The Supply/Demand Gap Is at a Tipping Point
Mines have not pulled enough silver out of the ground to meet the rising demand of industrial manufacturers, investors, and luxury craftsmen since 1999. Since 2000, unmet silver demand has been cushioned a huge surplus amassed between 1975 and 1999.
Now those silver reserves from the previous century are running dangerously low. 86% of the surplus is already gone. The problem is thatover the last 10 yearsdemand has grown nearly TWICE as fast as the supply.
— | And at todays spot price, it Is not difficult to see why. Just a few years ago, silver hit $48 per ounce. A return to its recent high would mean an increase of roughly 160%. | —
Since silver is an essential component in electronics, demand grows with nearly every technological innovation. Supply, on the other hand, is limited by the Earths content and mans ability to mine it. Once the silver reserves are gone, we could be paying a lot more for silver!
Some of the World’s Savviest Investors Are Betting on It
Today, JPMorgan Chase, the largest investment bank in the country, has stockpiled 55 million ounces of silver. Back in 2012, however, they only held 5 million. So, clearly, this financial powerhouse sees some upside potential in silver to increase their holdings tenfold.
And at todays spot price, it Is not difficult to see why. Just a few years ago, silver hit $48 per ounce. A return to its recent high would mean an increase of roughly 160%.
In that instance, JPMorgans stockpile-currently valued at just under a billion dollars would be worth more than $2.6 billion!
All that needs to happen is to have a few tens of billions of dollars start flowing into the silver market, which is a drop in the bucket on the scale of global finance now, and silver would be gapping up by $5 or $10 an ounce per day.