SILVER ALERT
To all my readers
.All I can say is to get all the silver you can get. If you can get any it’s the best investment for the little guy. Silver is exploding as I’ve been predicting for sometime. Even though it’s broke records today, it’s still is a poor man’s gold and it’s still affordable. The day is going to soon come where it will be out of reach of the average citizen, price, wise and availabilities will become a big problem. Call me if you’re interested. Mick.
Michael Mick Webster https: Blog
WIB Financial Group. Investor (Finance Startup & Expansion capital)
Negotiate business, labor & personal issues, etc.
Modern furniture for sell
Buy sell and trade
Modern and Indian jewelry
Buy & sell Gold and silver
Buy and sell real estate
syndicated investigative reporter
MICHAEL Mick Webster
Mvwsr@aol.com
Professional negotiator
301 Forest Ave,
Laguna Beach, 92651
Office (949 494-7121
Mobile, 949-697-5676
Silver’s Strategic Moment:
Below is a professional, deeply researched news-style white paper on why silver is positioned for strong value now and in the future — especially relative to the U.S. dollar’s weakening trend and growing industrial demand. It ties together up-to-date market dynamics, supply-demand fundamentals, industrial uses, structural constraints, and institutional positioning such as JPMorgan’s role in the market.
Silver’s Strategic Moment:
By Investigative Reporter Michael Mick Webster
Industrial Demand, Supply Constraints, and a Changing Monetary Landscape
Executive Summary
Silver — historically known as a precious metal and monetary asset — is increasingly transitioning into a critical industrial metal driving multiple global megatrends. Today’s market reflects an unprecedented structural deficit, a surge in industrial demand tied to renewable energy, electric vehicles (EVs), electronics, and advanced technologies, and broader macroeconomic shifts such as a weakening U.S. dollar. These factors collectively contribute to a case where silver’s value is not only rooted in traditional stores of wealth but also in robust, long-term real-world demand, suggesting potential price appreciation beyond historical norms.
1. Industrial Demand: Silver’s New Economic Role
A 21st-Century Industrial Catalyst
Silver is no longer primarily a monetary or jewelry metal — industrial demand now accounts for the majority of global consumption, driven by:
- Solar Photovoltaics (PV) — Silver paste is indispensable for conductive pathways in solar cells. Demand from the solar sector is expanding rapidly as global renewable energy capacity grows. Analysts report that solar demand alone could consume up to ~30% or more of annual silver supply by the end of the decade. Baker Steel Capital+1
- Electric Vehicles & Power Electronics — Advanced EVs and power control systems use silver in battery management, contacts, connectors, and charging systems. EV electrification is linked to a meaningful rise in metal intensity per vehicle. Wedbush Investor
- Electronics & AI Infrastructure — Silver’s unmatched electrical and thermal conductivity makes it critical in semiconductors, 5G infrastructure, and AI data centers, sectors predicted for continued growth. Wedbush Investor+1
- Samsung Tesla and other electric car manufacturers are turning to batteries that uses silver so they last longer and or safer. Lithium is being replaced.
Demand Growth Outpacing Supply
Total global silver demand hit record levels in recent years, with industrial consumption exceeding 700 million ounces annually — more than half of total demand. CME Group Meanwhile, mines are producing only modest increases in output, resulting in persistent annual deficits where consumption continuously outstrips production. Wedbush Investor
2. Supply Deficits and Development Challenges
Persistent Structural Deficit
For multiple consecutive years, silver demand has outpaced supply, creating a structural deficit. Estimates suggest cumulative deficits could total hundreds of millions of ounces, effectively draining above-ground stocks and tightening physical availability.
New Mines Take Years to Develop
Silver mine projects face long lead times due to exploration, permitting, financing, and construction. Studies show that development from discovery to production typically takes 7–10+ years, often longer in politically complex or environmentally sensitive jurisdictions. This lag creates a rigid supply response that cannot quickly adapt to accelerating demand, reinforcing the likelihood of prolonged market tightness.
Compounding this issue, silver is primarily produced as a byproduct of copper, lead, zinc, and gold mining. As a result, silver supply is less responsive to silver prices themselves; even sharply higher prices do not immediately incentivize significant new standalone silver production. This structural characteristic further constrains supply elasticity and amplifies upside price pressure during periods of demand expansion.
- Monetary Dynamics and the Weakening U.S. Dollar
Silver as a Dual-Purpose Asset
Silver occupies a unique position among commodities: it functions simultaneously as an industrial input and a monetary metal. In environments of monetary debasement, rising fiscal deficits, and declining confidence in fiat currencies, silver historically benefits alongside gold — but with greater volatility and, often, greater upside leverage.
The U.S. dollar faces long-term structural headwinds driven by:
- Expanding federal debt and persistent budget deficits
- Higher-for-longer interest rates stressing fiscal sustainability
- Increasing use of alternative currencies and bilateral trade settlement mechanisms globally
As the dollar weakens in real terms, hard assets priced in dollars — particularly scarce metals like silver — tend to reprice higher. Unlike gold, silver’s lower market capitalization allows capital inflows to have an outsized impact on price movements.
Inflation Protection and Real Asset Repricing
Even in periods where headline inflation moderates, structural inflation driven by energy transition costs, reshoring of manufacturing, and geopolitical fragmentation supports the case for real assets. Silver, unlike many commodities, benefits both from inflation hedging demand and from direct consumption growth.
- Institutional Positioning and Market Structure
The Role of JPMorgan and Physical Silver Holdings
One of the most underappreciated aspects of the silver market is the concentration of physical inventory. JPMorgan is widely understood to be one of the largest holders of physical silver globally, with estimates often exceeding 600 million ounces held directly or indirectly through vaulting and exchange mechanisms.
While futures markets can influence short-term pricing, physical silver ultimately settles supply constraints. As industrial users increasingly require guaranteed delivery, the value of actual vaulted metal — not paper contracts — rises. Tightness in the physical market increases the risk of price dislocations between spot, futures, and wholesale industrial procurement.
Paper vs. Physical Dynamics
Silver’s paper market (futures, options, ETFs) is many multiples larger than the available physical supply. This imbalance has historically suppressed prices, but it also creates latent instability. In periods of sustained physical demand, paper claims may be forced to converge with real-world availability — often rapidly and violently.
- Relative Valuation: Silver vs. Gold
The Gold-to-Silver Ratio Signal
The gold-to-silver ratio has remained historically elevated relative to long-term averages. While gold often leads during early phases of monetary stress, silver has traditionally outperformed during later stages when inflation expectations rise and industrial demand strengthens.
A normalization of this ratio — even partially — would imply silver prices rising at a significantly faster rate than gold, independent of gold’s absolute performance.
Undervalued on a Real Basis
When adjusted for inflation and compared to prior industrial cycles, silver remains substantially below historical highs. Yet today’s demand base is structurally stronger and more diversified than at any point in modern history, suggesting that past valuation benchmarks may understate silver’s future equilibrium price.
- Forward Outlook: A Converging Set of Tailwinds
Silver’s outlook is defined by convergence rather than speculation:
- Industrial demand is non-optional and growing
- Supply growth is constrained, slow, and largely unresponsive
- Monetary conditions favor hard assets
- Institutional inventories are concentrated
- Physical availability is tightening
These forces do not depend on a single catalyst. Instead, they represent a durable shift in silver’s role within the global economy — from a cyclical precious metal to a strategic industrial and monetary asset.
Silver stands at the intersection of energy transformation, technological advancement, and monetary realignment. Unlike purely financial assets, silver’s value is grounded in physical necessity. Unlike purely industrial metals, it carries monetary and store-of-value characteristics that gain importance as confidence in fiat systems erodes.
In an environment defined by structural deficits, rising real-world demand, and macroeconomic uncertainty, silver appears positioned not merely for cyclical appreciation, but for a sustained repricing reflective of its evolving strategic importance.
Investigative Reporting & Opinion Pieces
Michael Mick Webster
As an investigative reporter, I strive to provide in-depth, honest, and thorough coverage of a wide range of topics, with a particular focus on financial matters, policy, and the issues that shape our daily lives. My work is grounded in meticulous research, critical analysis, and a commitment to shedding light on the complex stories that impact individuals and communities.
However, it is important for my readers to understand that while I cover financial issues in detail, I am not a licensed financial advisor, lawyer, accountant, or subject to any specific regulatory requirements. My articles are designed to inform, challenge, and spark conversation, but any advice or information offered should not be construed as professional guidance.
In addition to reporting the facts, I also offer my personal perspective and analysis on various subjects. My opinion pieces are exactly that—opinions. They are intended to provoke thought, encourage dialogue, and explore different angles on the issues at hand. These views are my own, based on the information available, and should not be seen as definitive advice or counsel in any field.
I am committed to transparency and responsible journalism, and I encourage my readers to do their own research and seek out professional advice where necessary. My goal is to provide the context and clarity that allow you to make informed decisions on matters that affect your life. Thx Mick
No comments:
Post a Comment