The law of supply and demand is the strongest economic force in the market place. I have listed the forces that are building to create the largest bull market in the history of commodities, silver.
Today we are starting to see the beginning of the shortage of silver. It is hard to ignore the 4000 years of history that the relationship of gold and silver have to real money. Gold used to be scarcer than silver. Gold was more stable than silver and prettier for jewelry. It was real money up until the 20th century. So historically speaking 43 years ago the US government could not afford to make its currency out of silver and in 1936 they stopped making their currency out of Gold. Now the dollar is worth 2 % of what it was 90 years ago.
The ratio of gold to silver above ground 90 years ago was 32 to 1, 32 ounces of silver for every ounce of silver. In 1980 there was 3 ounces of gold to every 4 ounces of silver. Today there is 5 ounces of gold to every ounce of silver. The highly industrialized nature of the human race is consuming 4000 years of stored up silver. So in about 3 years there will be a silver shortage where every industrial user that needs it will pay any price to get it to keep their production going. Just like platinum for cleaner air uses and jewelry. Platinum prices have far exceeded the price increases of gold due to the industrial consumption of platinum for cleaner air products. Silver has become an electronic necessity and medical necessity for industrial production which will cause the depletion of all silver inventories.
Don’t mess with Mother Nature – the law of Supply and Demand will work in the long run with Silver.