Analyzing Silver’s Undervaluation, Scarcity, and Implications for the Economy
- Silver is undervalued as an asset, priced at 84-1 compared to historical ratios of 16-1.
- Increasing delivery of silver contracts and BlackRock’s significant purchase of PSLV indicate rising interest in silver investment.
- There is a deficit in mine supply versus demand, emphasizing the scarcity of silver.
- Concerns are raised about the availability of silver for delivery, as the number of contracts exceeds the available bars.
- A report suggests that in-ground silver reserves could be depleted globally by 2036, with Mexico potentially being the first country to exhaust its reserves.
- Silver holds significant importance in the military, industrial, and monetary sectors.
- The banking system faces potential strain, resistance to tighter capital standards, and vulnerability concerns.
- Challenges are expected in commercial real estate and small businesses, potentially impacting the economy.
- Optimistic views of a stock market boom and smooth recovery are questioned.
- Authorities may not bail out failing banks, as seen during the 2008 financial crisis.
Andy Schectman, who knows much about investing, wants to tell us something interesting about silver. He says that silver is worth more than people think. In the past, silver was worth 16 times less than gold, but now it’s worth 84 times less! Silver is great because you can get much of it for little money.
Andy also tells us that more and more people are buying silver contracts. Even big investors like BlackRock are getting interested in silver. The big players are buying shows that silver is becoming popular to invest in.
But here’s the thing: there needs to be more silver. In 2022, there was 237.7 million ounces less silver than people wanted. Silver is even more valuable because there is not enough for everyone. Andy is worried because there are many more silver contracts than actual silver. This might cause problems if people can’t get the silver they want.
A report says that in 2036 all the silver in the ground might be gone. Mexico might run out of silver first. This report tells us that silver is a limited resource, meaning there’s only a certain amount in the world. Because of this, investing in silver could be a brilliant idea.
Silver is essential in many areas. It’s used in the military, industry, and even in money. For example, it’s used in missiles and other military equipment. This makes silver even more valuable and makes it a good investment.
Andy is also worried about banks. He thinks they might be some things that could be improved. Banks are resisting rules that would make them safer. This could cause some issues in the banking system. Andy is especially concerned when loans for buildings and small businesses must be paid back.
He doesn’t think things will get better quickly as some people think. The problems with banks and loans could make it hard for the economy to recover. This time, banks might get less help than they did in the past.
So, Andy wants us to know that silver is undervalued, which means it’s worth more than people realize. He thinks investing in silver is a good idea because there’s not enough for everyone. Andy also tells us how important silver is in the military and industry. Andy is worried about the banks and the economy, but he hopes we can make smart choices for our future by being cautious and thinking about investing in silver.