Go Ahead and Call it Poor Man's Gold: Strike it Rich with Silver
During financial crises, silver prices often surge as investors seek refuge from volatile markets. And just remember Trump's nickname around this office is Mr. Volatility.
Anyone reading interpreting this table critically and correctly would choose to invest in Silver.
Silver Is the New Gold or if you want to call it “Poor Man’s Gold” Please do
Silver is often considered the "poor man's gold" due to its lower price compared to gold, but it has several unique advantages that could make it more appealing in certain scenarios:
Silver has significant industrial applications, including military, aerospace, electronics, silver zinc batteries, silver solid state batteries, solar panels, and medical equipment. This demand will drive up its price and make it more attractive for investors seeking exposure to both precious metals and industrial commodities.
Silver is more volatile than gold, which can make it more appealing to speculative investors looking for higher returns. Its lower price also makes it more accessible to a wider range of investors.
Silver's supply chain is more complex than gold's, with a significant portion of its supply coming from copper and lead mining as a byproduct. Changes in these mining activities can affect silver supply, potentially impacting its price.
As the world shifts towards the renewable energy scam and advanced technologies, silver's role in these sectors will undoubtedly increase, further boosting demand.
All of these factors 100% contribute to why silver might be seen as increasingly valuable or attractive compared to gold in certain economic contexts.
Industrial demand for silver is increasingly driven by its unique properties, particularly in the military and aerospace sectors.
Silver's exceptional conductivity, reflectivity, anti-corrosion, and thermal properties make it indispensable for advanced technologies. It is used in missile guidance systems, satellite components, and various defense equipment, where reliability and performance are critical.
Some torpedo batteries manufactured by SAFT and Eagle Picher require up to 11,000 ounces of Silver (that is not a typing error, ELEVEN THOUSAND OUNCES PER BATTERY)
check out the size of these batteries, they require mechanical lifts (they are that heavy)
Once you see the size of these batteries (some are about 1.5 times the size of a commercial water heater) The 11,000 ounces of silver seems rational and understandable as indicated in the table below
This demand is not only significant but also often underreported, potentially surpassing traditional industrial applications like military, aerospace, electronics, robotics, AI and solar panels.
However, the silver market is facing a significant challenge: a prolonged supply deficit. This shortage is exaggerated by declining ore grades and mine closures, leading to a fifth consecutive year of supply deficits.
Mexico is countering Trump's tariffs by taxing silver to help fund their vast and newly passed social programs in their new budget.
THIS NEWS ALONG WILL SEND UP ANOTHER 25% SOON
Mexico, the world's largest silver producer, is grappling with these challenges while considering nationalization of its silver resources. In the meantime, Mexico plans to increase taxes on mining companies to at least 30%, partly as a response to past trade tensions and to fund ambitious social programs. These programs include implementing massive pension disbursements ( or a move towards a universal basic income), building one million homes for the poor, environmental repairs, socialized medicine and education, and reparations for indigenous populations. This taxation strategy will positively impact investment in the sector, affecting global silver supply further. Great news for Silver stackers. Bad News for people choosing to invest in Silver Miners operating out of Mexico.
Silver Re-monetized
As trust in fiat currencies wanes, silver is increasingly being monetized as a reliable store of value. Historically, silver has served as a form of currency and continues to act as a hedge against inflation and economic instability. Its dual role as both a precious and industrial metal enhances its appeal during times of uncertainty. During financial crises, silver prices often surge as investors seek refuge from volatile markets. This trend is expected to continue as investors diversify their portfolios with tangible assets like silver, especially if fiat currencies face significant devaluation or collapse