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Silver Sector Shrinking
Sean Rakhimov
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Thursday, August 23rd
http://www.silverseek.com/article/silver-sector-shrinking-5826
....our particular interest is in the silver space, and that is where we see an elephant in the room that hasn’t made headlines yet.
Bolivia, of course, was the latest in the news with nationalization of.....
Argentina...a direct quote from a news release dated July 2, 2012 by Geoff Burns, President & CEO of Pan American Silver commenting on the legislation proposed by the government of Chubut province of Argentina:
"This is an incredibly unfortunate development for the mining industry in the province of Chubut and in Argentina. Having made significant investments over the last two and a half years in work to prepare the world-class Navidad silver project for development, it is extremely disappointing that the government of Chubut would introduce this legislation without meaningful consultation with the mining industry. Since acquiring Navidad, we established a policy of open and honest communication with all levels of government as to our progress and plans and were surprised that we were not consulted on the economic effects that the proposed legislation would have on Navidad's development. I am convinced that it was the provincial government's intent with the new draft legislation, to define a path for the development of Navidad, not to render the project uneconomic. However, if the draft law is passed as submitted there can be no other choice currently than to stop investing further in the project".
....the silver sector is so small and the above mentioned countries collectively make up a big of chunk of it. According to CPM Group’s 2012 Silver Yearbook, the aforementioned countries are projected to produce some 170 Moz silver this year versus the anticipated total global silver production of 788 Moz. While at first glance that only makes up 21.6% of total annual mine supply, which in itself is significant, we submit that it represents an even greater percentage of “investible” silver production.
willem middelkoop @wmiddelkoop
25% of silver demand because of new technologies since 2000. Each iPhone needs 0.25 gr of silver. #SilverSummit
willem middelkoop @wmiddelkoop
.. nearly 5 mln oz of silver withdrawn from a single COMEX depository in 3 days! 12% of the entire COMEX REGISERED SILVER INVENTORY 2-end
Expand
4h willem middelkoop willem middelkoop @wmiddelkoop
Sprott: 3.6mln oz silver withdrawal from COMEX. The physical silver drain continued Tuesday, as a massive 1.2 mln additional oz withdrawn 1
looks like the major moves for the next few weeks is complete in silver (and it's cousin, almost, 1629/30 looks a better base) should get a reprieve from the 3 bears .....not so much warm porridge tho.....
View attachment 50054
still plenty of points in the bag for close-up traders....punters and investors are more likely to find the long side tricky and nail biting....it's a pick-yer-spots game for the next few weeks
edit: both metals failed what should have been standard Cup/Handle patterns too.....orthodox shapes imply major break-down technicals
This is what will gradually brake the paper trade .
Looking pretty quiet in here, is there any silver bugs still getting round? I hope the lack of interesting price action isn't deterring people.
Not on your life, in my view it is still the only game in town.
The supply side is critically short, world production is decreasing, the need increasing,
just a matter of time.
The thing that gets me is why it hasn't already taken off. Everything I have read/watched indicates that there is currently less above ground silver than gold. Investor demand in the US is on its way up. I recently read china has just become a net importer of silver. As you say consumption of silver is increasing, and will only continue to do so as we dive further into the tech revolution.
Hope you're right and it is simply going to be a waiting game. Surely it won't go on for more than another year or two though.
Wish I had more cash for more bars.
Probably because it is thought of primarily as an industrial metal rather than an investment one. Since silver coinage/currency stopped, it's perception as a store of wealth has waned. At least in India, silver was (is?) not converted as much as gold.When (If) this changes, the price will shoot up at the expense of industrial demand.
Would be interested in what amount of "paper" silver is out there compared to the real thing? By some estimates it is ~100X for gold.
I don't know that anyone can say for sure. I think a lot of people that trade the paper market are aware that their trades are likely not back by physical, it's just another trade for them.
Any industry using silver will simply have to pay the price, and pass the cost on to consumers.
I read somewhere that extracting and then re-using silver from electronic devices etc would run at a cost of over $1000 per ounce. Which is good news also(if true). There will be a run for silver(and gold). There will be a stage of solid gains, followed by the huge bubble hopefully.
The thing that gets me is why it hasn't already taken off. Everything I have read/watched indicates that there is currently less above ground silver than gold. Investor demand in the US is on its way up. I recently read china has just become a net importer of silver. As you say consumption of silver is increasing, and will only continue to do so as we dive further into the tech revolution.
Hope you're right and it is simply going to be a waiting game. Surely it won't go on for more than another year or two though.
Wish I had more cash for more bars.
It is the very smart big money keeping the lid in silver whilst they accumulate the physical. With a Chairperson of US regulator resigning this week, Nadler getting the boot from kitko, and the US mint holding back sales of silver coins because they cannot keep up with supply due to lack of physical your patience may soon be rewarded.
It is the very smart big money keeping the lid in silver whilst they accumulate the physical. With a Chairperson of US regulator resigning this week, Nadler getting the boot from kitko, and the US mint holding back sales of silver coins because they cannot keep up with supply due to lack of physical your patience may soon be rewarded.
True. Except if your holding very long term...
True unless there is an alternative available.
Not surprised at the elec costs. Sounds about right if you're doing this in a safe manner. Lol. Holding many bars are we: ?
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