GFMS: Silver Industrial Demand to Reach New High in 2014

ksammut

GFMS: Silver Industrial Demand to Reach New High in 2014

tneig

Thanks ksammut for posting the article. I took a look at the article and have my usual counterpoints.

I'm learning to take articles and such written commentary with a grain of salt. Reading them over just a year, I group them in to blah, hype, potentially valuable, or just writing to get paid. Same things almost word for word have been writting over the past several years, and likely longer. One twist, reason or the other. I hope Michelle got paid for the article.

There is an unwritten hint here that their theme or conclusions will have some resultant. There's always the hint that that could be the 'price'... Thats the teaser.

The article starts out saying that silver investment is in the spotlight right now and industrial should not be overlooked. Its just a teaser line to get you to read more, to try to understand what it means. But what does that statement mean. It means nothing because most of silver use is already industrial and it already varies. A lesser portion for jewelry and investment... The first statements set the frame of thinking in the readers mind, or can be used to capture your focus. I think this is the capture method.

Silver and gold prices 'track' to varying percentages but they do track together. This has been true for the last decade. Sure there are some temp swings, but overall comparing the charts, they seem to track.

So until something drastically changes, something beyond the industrial demand for silver is setting the price. The price for both PMs may be a combined market movement, controlled pricing, or perhaps the declining dollar. But it seems a breakout of silver due to some supposed demand a year or two off is not a practical prediction. Its a pondering at best.

Its as likely the price goes up because the dollar declines more, rather then the affect of a small rise in industrial use. Or the spot price being set by paper, and shorts etc. If market manipulation is in place, they will surely use it to check an independant rise of silver.

I personally think that personal silver investment use has and will 'grow' faster than industrial and could affect the price more than single percent changes in industrial use.

But then again, I'm just writing stuff. We'll see what happens.

:-)

LukeMarshall

Thank you for your post tneig, I find it refreshing to hear individuals points of view on silver stacking.

roadrunner

I personally think that personal silver investment use has and will 'grow' faster than industrial and could affect the price more than single percent changes in industrial use

SRSRocco did a very well researched article on this subject in the past 2 weeks. It was pretty clear to me that the investment side of silver continues to trump the industrial
demand by a large margin.

cladking

<< <i>Thanks ksammut for posting the article. I took a look at the article and have my usual counterpoints.

I'm learning to take articles and such written commentary with a grain of salt. Reading them over just a year, I group them in to blah, hype, potentially valuable, or just writing to get paid. Same things almost word for word have been writting over the past several years, and likely longer. One twist, reason or the other. I hope Michelle got paid for the article.

There is an unwritten hint here that their theme or conclusions will have some resultant. There's always the hint that that could be the 'price'... Thats the teaser.

The article starts out saying that silver investment is in the spotlight right now and industrial should not be overlooked. Its just a teaser line to get you to read more, to try to understand what it means. But what does that statement mean. It means nothing because most of silver use is already industrial and it already varies. A lesser portion for jewelry and investment... The first statements set the frame of thinking in the readers mind, or can be used to capture your focus. I think this is the capture method.

Silver and gold prices 'track' to varying percentages but they do track together. This has been true for the last decade. Sure there are some temp swings, but overall comparing the charts, they seem to track.

So until something drastically changes, something beyond the industrial demand for silver is setting the price. The price for both PMs may be a combined market movement, controlled pricing, or perhaps the declining dollar. But it seems a breakout of silver due to some supposed demand a year or two off is not a practical prediction. Its a pondering at best.

Its as likely the price goes up because the dollar declines more, rather then the affect of a small rise in industrial use. Or the spot price being set by paper, and shorts etc. If market manipulation is in place, they will surely use it to check an independant rise of silver.

I personally think that personal silver investment use has and will 'grow' faster than industrial and could affect the price more than single percent changes in industrial use.

But then again, I'm just writing stuff. We'll see what happens.

>>



Think of it this way; There probably wasn't more than a few thousand ounces of silver used
in all of world history to make buggy whips. In every single case these buggy whips would have
functioned perfectly as buggy whips even without the silver in them. Indeed, up until the last
few centuries total necessary demand for silver was insignificant. Even its use as money could
have been taken by another commodity or debased gold alloys.

Today silver is being consumed in an increasing array of increasingly higher tech products. It
is more and more necessary to the progress of man with each passing year and there's noth-
ing on the horizon to suggest this will change. Meanwhile, the supply has barely changed in
the last two generations as enormous modern mining outputs are absorbed into consumption
and waste.

The only thing standing between silver and far higher prices is inertia. People believe silver is
worth much less than gold so it is. This can't be maintained indefinitely as silver demand con-
tinues to ratchet higher and people continue to seek investment in a world of negative interest
rates. The economy is propped up by new money and low interest, and silver (as well as gold)
moves higher or bonds go in the dumper. These are the near term choices. Add in the distinct
possibility that the propped up economy can actually sell and waste even more than we are now
and you have a prescription for much higher silver prices. Of course there's a chance of stagfla-
tion but gold will do well even in that enviroment and silver can be pulled along on its coattails.