#Silver, it seems, is everywhere. The #preciousmetal’s dual role as both an #investment and #industrial metal means that while it can be bought physically or in paper form by investors, it also has myriad #technological and #medical applications. It’s in part because of those many uses that some silver market watchers think at some point — perhaps in the near future — #demand for the metal will exceed #supply, creating a #shortage. Here’s a few reasons why: - #Price #manipulation: Ted Butler of Butler Research states in a 2013 article that many years ago he discovered that “the price of silver stay[s] low because it [is] manipulated by excessive short selling on the #COMEX.” That’s significant, he believes, because “nothing invites a shortage more than a prolonged artificial low price and its affect on the law of supply and demand.” - #Physical vs. #paper silver: Some market observers, states Money Morning, believe that if all the people who own silver #futures wanted their metal delivered, there wouldn’t be enough physical silver to do so, “which would result in a ‘default’ by the Comex where the silver contract is traded.” - Increasing industrial applications: The #battery, #electronics and #automotives industries are just a few places where silver’s industrial applications come into play, according to the Silver Institute. Currently, demand for products from those and other sectors is picking up. - Growing investment demand: For evidence that investor demand for silver is picking up, one need look no further than the #USMint, which last year sold a record 42,675,000 American Eagle silver #bullion #coins. Thus far, investors are showing “healthy” interest in acquiring silver coins in 2014 as well. Excerpt from “Is a Silver Supply Deficit on the Horizon?” in Investing (2014-03-17)
Posted on: Tue, 18 Mar 2014 19:00:00 +0000
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