Back in November, I published a post titled, 'This year's 194 million ounce silver deficit to push prices higher' sending out a warning that a massive supply crunch was forming in the physical silver market. The year wasn't over yet so the 194 million number was a projection. As it turns out, the silver deficit was way larger.
The Silver Institute on Wednesday published its 2023 Annual World Silver Survey. Their research concludes that the deficit hit a record 237.7 million ounces in 2022. They also conclude that the deficits of the last two years completely offset the surpluses of the previous 11 years. Global demand also rose to a new record high of 1,242 billion ounces, for an 18% increase from the record high deficit of the previous year.
Silver production on the other hand, remained steady at about 1 billion ounces, yet the institute projects another deficit for 2023 of about 142 million ounces. With all the silver flying off the shelves, according to main dealers, such as Andy Shectman at Miles Franklin, I can only see this number going higher.
Silver demand is unprecedented. India crushed it in 2022 by being the largest single importer with over 300 million ounces. I saw in the news just a few days ago that India has just surpassed China as the most populous country in the world. Silver is very popular in India as jewelry. So much so that they gobbled up almost a third of the entire world silver supply last year. Investment demand in India rose a whopping 188% year over year.
I had written about the 194 million ounce deficit right after the FTX blowup. Silver really tried hard to rally to $25 over the winter but a manufactured take down pushed the dollar price of silver back to $20. Bix Weir had discovered that 1.4 billion paper ounces was dumped on the silver futures market over the course of just a few days to suppress the price of silver. The shorts managed to push silver down only briefly. What came immediately afterwards was the collapse of two regional U.S. banks and one Swiss bank.
At around this time, silver hit bottom on March 10 and hasn't looked back. At one point, it was up more than 30%. At time of writing, silver is back in its foothold at $25.22 for a 25% gain so far. Does this chart suggest $27 in a few weeks?
Premiums too are at record highs, driving prices even higher. These ridiculously low spot silver prices, controlled by the LBMA and COMEX won't stay low for much longer as more and more countries join the BRICS league of trading partners, thereby completely bypassing the dollar as a medium of exchange.
According to Gerald Celente, publisher of The Trends Journal, the U.S. dollar accounted for 84.3% of of bills paid in international commerce for the month of February, down from 86.8% a year earlier. This doesn't seem like much until you back up and see the bigger picture. China's share in February has grown to 4.5%, up from just 2% the year before. This too doesn't seem like much until it sinks in that it marks a 125% increase in usage for the Yuan.
A triple convergence is set to occur in June as continued rate hikes and associated lag effects along with record M2 money supply contraction and its own associated lag effects as well as the debt ceiling which supposedly has an end date of June 5, all come to fruition.
It's getting harder and harder to get our hands on gold and silver. Gold, the metal of kings saw central bank purchases in 2022 to a magnitude not seen since 1967 and they continue to add more to their vaults this year with Singapore alone buying 68 tonnes.
Now, with the silver deficit projected to get worse, where do you think its price is headed? For me, it's a no-brainer. Silver is not some get rich quick scheme. It's insurance against any falling currency, just like gold is. I'm a huge proponent of silver ownership and believe that everyone should have at least one ounce of silver. Alas, there isn't enough for everyone and that's why I recommend getting some silver while it's still available.
Soon, you'll be seeing the words UNOBTANIUM and UNAFFORDIUM as they become synonymous with precious metal shortages. For now though, there is still some silver available. See my Ebay links below.
Peace and love to everyone.
P.S. Need silver? I've added Ten 10 ounce pure .999 silver bars now available for sale along with just $10 S&H (within Canada) on my Ebay channel. Show your support by buying real silver. Send me a quick note letting me know you saw this post on PublishOx (or Substack) and get 20% off already low ship fee. Once they're gone, they're gone. Consider investing in silver. Click the image below to view the listing. I have other silver bars and coins listed so be sure to browse my other listings as well and add me as a favorite. Thank you for your support!
Republic Metals 10 ounce bar. Main dealers are either sold out or have wait times. When you buy from me, the only wait time is 'while in transit'. I usually ship within 24 hours, except weekends and holidays.
I'm now also on Substack where I will soon begin new podcasts as well as post extra material.
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