Silver and the Inevitable Bull Market
Recently we discovered an interesting piece on the how demand for silver over the next decade or two could become explosive. Alongside a weak supply pipeline, silver is looking very bullish. Daniel Ameduri is the co-founder of Future Money Trends, FMT Advisory and Crush the Street. Daniel has become a top resource expert for over 200,000 people who follow him at FutureMoneyTrends.com
Here are some interesting extracts from a recent Daniel Ameduri interview:
“There’s a ton of speculators involved in the commodity markets and silver market. They are able to relieve themselves by using all these digital trades on the COMEX. If they actually had to have physical silver there would be a shortage.
The future supply line for silver and gold is horrendous. There are no major discoveries happening. There’s no big mines being built. So, we know over the next 10-years supply is going to become worse.
On the demand side we have things like solar and electric vehicles which require silver in the batteries. 10 years ago, the demand for silver for these products wasn’t even registrable and now they account for the largest consumption of the demand side - an industry that didn’t even exist 10 years ago and that’s only going to grow. So, the demand for silver is going to be explosive in the next 10-15 years and gold demand could also be explosive thanks to the inflation that we are just starting to see.
The demand for both gold and silver is very strong and the supply – the pipeline – is horrendous. We have already seen gold supply plateau and silver supply is going to take a cliff dive.
How will the shift to electric vehicles impact silver?
Silver should be thrown in with the clean metals just like copper, cobalt, and lithium. Silver should be right there. Both the free market and government has demand for silver which is highly unusual. All around the world there are mandates. There’s a law in China where they want half the vehicles to be electric. Countries like France who have put a mandate where by 2050 they only want electric vehicles. China wants 12% of their vehicles to be electric by 2020. Cities like Vancouver are getting rid of their gas stations to force the population into buying electric vehicles. This is incredibly bullish for silver. Electrification of vehicles is definitely an inevitable trend. It’s because of the free market force that wants it. The millennials want it, the emerging economies need it. Everything from the chargers for the vehicles to the vehicles themselves requires silver.
In California, 39 million people live there. The state has passed a law mandating that all new home construction is going to have to have solar panels on the roof. That’s all going to take silver. Not only will more governments mandate new houses to have solar panels but the free market will want it. Who doesn’t want self-sustaining energy?”
It is inevitable that demand for silver will increase into the future thanks to the growing expectation and commitment to renewable energy, driven by the free market and government policy. Daniel believes that investors still have not missed out on investing in undervalued assets such as silver. The growth potential for silver industrial uses, alongside supply and demand factors, demonstrates that silver has a bullish outlook for a long time to come.