The Perils of Cheap Commodities
We Gotta Right this Ship or We'll ALL Pay the Price.
Silver's Extinction: A Precious Metal at Risk
The looming threat of silver's extinction is a critical issue that demands our attention. As readers, we must understand the intricate balance between industrial demand and monetary value that defines silver's unique position in our economy and society.
The Industrial Trap
One common mistake among silver analysts is overemphasizing industrial demand, particularly from sectors like solar energy. While industrial applications are important, we must be cautious about allowing silver to become predominantly an industrial metal. Since its removal from coinage in the 1960s, silver has been primarily used in industry, a shift that has significantly benefited the ruling class in two major ways.
Firstly, it provided an easy avenue for printing money without the constraints of precious metal backing. Secondly, it ensured a cheap supply of silver for various technological applications, from war equipment to modern electronics and communication devices.
The Perils of Cheap Commodities
When commodities become too cheap, wasteful practices emerge. This phenomenon is evident in various sectors:
Electronics: The casual attitude towards replacing smartphones, as seen in numerous advertising campaigns, reflects a culture of waste enabled by cheap materials.
Energy: Low energy costs lead to careless consumption, as exemplified by the tendency to leave lights on or maintain excessive heating.
Silver: If silver is depleted through industrial use, it risks losing its intrinsic value. We must safeguard silver by promoting its monetary use and exploring alternatives like copper for certain industrial applications.
I am going to expand on this section some because it bears repeating
The perils of cheap commodities manifest in various sectors, creating a culture of waste and careless consumption. In the electronics industry, particularly with smartphones, we witness a cavalier attitude towards replacing devices. Television advertisements are inundated with offers like "Get an iPhone on us" or "Families: Get four iPhone 16s for $25 per line with four eligible trade-ins." These commercials often feature scenarios of casual destruction: a phone accidentally tossed into a washing machine, smashed by a hammer, dropped while juggling coffee, or even flattened by a steamroller. Such depictions normalize the idea of easily replaceable devices, encouraging a throwaway culture that's only possible due to the artificially low costs of the materials used in these products.
This wasteful mindset extends to energy consumption as well. When energy costs are low, people tend to be less mindful of their usage, leaving lights on unnecessarily or maintaining excessive heating in their homes. The true cost of this carelessness is often hidden from the consumer, masked by the artificially low prices of energy resources.
Similarly, the undervaluation of silver poses a significant threat. If silver continues to be primarily depleted through industrial use, it risks losing its intrinsic value as a precious metal. To prevent this, we must advocate for a shift in perception, promoting silver's monetary use while simultaneously exploring alternatives like copper for certain industrial applications. This balanced approach is crucial to ensure that silver retains its value and doesn't become just another depleted industrial resource.
The normalization of waste in electronics, as seen in these pervasive advertisements, is particularly concerning. It reflects a broader societal issue where the true cost of our technological conveniences is obscured. The ease with which these ads suggest replacing damaged phones – often for free or at a nominal cost – belies the significant environmental and resource implications of such frequent device turnover. This culture of disposability is not just limited to phones; it permeates various aspects of consumer electronics, from tablets to smart home devices.
Moreover, these marketing strategies create a false sense of abundance and affordability. They mask the reality of resource scarcity and the environmental impact of constant production and disposal cycles. By making it seem normal and even desirable to frequently upgrade or replace electronic devices, these advertisements contribute to a mindset that is fundamentally at odds with sustainable resource management. This approach not only affects silver but also impacts a wide range of precious and rare earth metals used in electronics manufacturing.
The Energy Connection
Stephen St. Angelo's warnings about the impending energy cliff are worth heeding. The scarcity of energy resources is intrinsically linked to the value and availability of precious metals like silver.
Gold vs. Silver: A Crucial Distinction
Gold's perfection as a monetary metal lies in its high stock-to-flow ratio. New gold mining has minimal impact on above-ground inventories, typically affecting total supply by 1% or less annually. Silver, however, faces a more precarious situation due to industrial depletion.
Strategic Investment in Silver
For those looking to invest in silver, focusing on mining operations in favorable jurisdictions is crucial. Countries like Canada, USA, Bolivia, Morocco, Peru, and Argentina offer promising opportunities for silver mining investments.
In conclusion, we must recognize the delicate balance required to prevent silver's extinction. By promoting its monetary value, reducing wasteful industrial practices, and investing strategically in silver mining, we can work towards preserving this precious metal for future generations. The extinction of silver would not only represent a loss of a valuable resource but also a significant shift in our economic and technological landscape.
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There has been so much buzz among precious metals influencers about questions or topics lilke is Scott Bissent going to revalue US Gold? Are they going to really audit Fort Knox? Are they really going to Audit the IRS? Are they really going to audit the Federal Reserve? Is USA really going to back 40% of the money supply with Gold like Jim Rickards and Luke Gromen talk about?
So we discuss how US closed the Gold Window in 1971 (we go off a gold standard)
But the truth is USA couldn’t even maintain a copper standard for pennies.
This is an example of what I’m talking about when things are too cheap. Thankfully we can finally say goodbye to the penny but it’s symbolic of how far removed our minds are from respecting commodities.
Keep an eye on Copper
China is Gobbling it up Big Time
Global copper demand grew by nearly 4% in the first eight months of 2024, with OECD countries showing 3.2% growth and non-OECD nations 8.3%.
Mine supply growth moderated to around 3% year-over-year, down from 6-7% earlier in the year.
China has entered an era of copper overconsumption. In 2023, China's copper investment per capita reached 280 pounds, 40 pounds above the necessary level for its GDP per capita. By the end of 2024, this is projected to rise to 306 pounds, 45 pounds above the required level.
China's overconsumption is partially attributed to massive investments in renewable energy and electric vehicles. From 2018 to 2024, China added 1,100 gigawatts of renewable power capacity and 22 million EVs, boosting copper demand by an estimated 16.3 million tonnes.
Even accounting for these new sources of demand, China has overconsumed by an additional 15 million tonnes of copper in just six years.
The article notes a paradox in the copper market: despite modeling indicating persistent deficits, exchange inventories have surged, tripling since a short squeeze in April and May.
While near-term global copper market trends remain bullish, emerging signs like China's overconsumption suggest a less favorable long-term outlook.