Are still people out there buying long-term, I'm still bullish.
What will it take for pressure, still to mean it's really difficult to
say what's the real price of Silver
Silver will scare you out or wear you out, and I think that's pretty
decent.
Take on the market, I mean, you can go sideways for very long time.
With very little price movement, people get bored, they give up a
sellout, never going to happen, then you get to shoot spikes.
I can take place, especially call me up or down side if you're short.
And sup, you scared?
Or if you are short, and it moves, shoot me if you're short and sup,
you're scared and opposite because the other way and your bet the
other directions out to be very boring and it can be very exciting
right now.
We've been kind of in the boring mode.
We've been in this rain between 26 and 28, roughly a rather large
trading range, going to take more buying pressure and there has been a
great deal of biting pressure might take right now.
David is at the silver market.
Price is not really reflective of the fundamentals in the silver.
Meaning that you're still very robust Demand on the retail side and
even on the institutional size large investors, we are on track pretty
much me.
What we saw last year were halfway through the year last year, 2020
saw the largest investment, demand silver that I've ever witnessed.
Meaning that industrial demand for the roughly 50% of the market.
So round numbers, 500 million ounces are 500 billion in investment
demand last year.
2020.
Obviously, somebody had some Clear Vision for the silver market.
Institutional, e r e, t p.
S / 300 million retail about 200 million.
Again, I repeat, we are on track for about that much silver so far.
And one thing is sort of surprised me and I'm happy to see although
and I'm happy to pay.
It is the larger premiums that we've witnessed for months now.
And they are starting to fall back and I'm happy because no one
really. Pay a large premium, but it does tell us the practice in the market
is, at least on the retail side is still significant.
So there still people out there buying long-term, I'm still bullish,
what would take more pressure?
Still, there is a huge short position.
The market fell off as, you know, the last couple weeks rather
significantly roughly round numbers 2226.
A lot of short covering was accomplished but my view studying the c o
t. Four years did the Leveque enough.
Silver C10 make or break point it could go lower picture, go higher.
If I was going to bet I really wouldn't suggest, I don't really know
that the longer term, I'm still very public demand is waning slightly
on the retail side, mean the smaller Duster.
On the larger dusters that hasn't start back off yet.
So the main thing as you know, but maybe it take a minute or two, you
know, silver is a derivatives Market, its back by commercial bars and
that's, you know, Hunter silver.
That's roughly 1,000, troy ounces going into the retail Market.
You get into a product like a government minted, coin, a privately
minted, Medallion kilobar, 100 ounce bar answer.
Those are refined products.
Are we refined products and passport?
Because there was energy taken to produce.
Those there is a standard amount of the cost involved, just to take a
Thousand Oaks bar and turn into a thousand points for example.
So that adds depends your to three blocks per unit.
So that's the normal spread.
And then, of course, the dealer has to make a profit on top of that.
So there is a reason for a spread always, but again, as you
God David, you know, where is it in the spread is rather high.
But that is at the new standard I really want to stick my neck out
that far and say yes or no problem.
It has persisted longer than last time.
2008 during the financial crisis, when we had these huge previous
lasted a couple months or so this time, it's going on.
Basically, as you said from February to mean, it's really difficult to
say. What's the real price, we have the derivatives commercial bar price,
and then we have everything else.
So if you take everything else to it into account and averaged out
across the world, you would have but to the world price of silver and
that would be based on like countries like some of the European
countries that had a 17% that you added tax.
So I think the best way to actually find the price of silver is to do
a
Brief analysis on what it cost in different parts of the world and you
wait that average.
So if silver is 20% higher in Europe, in that 5% of Market, you ate at
5%.
Now the supply sides been pretty static for the last several years
around.
850 million ounces or so, depending which study you go by.
So that's been somewhat of a constant, it's actually been falling off
so lightly over the last few years and it's so that's how much is
there every year in the course is about $159 round numbers.
The three cycles of a billion, ounce Market every year.
And this is the man that's going to tell you.
You going to have a high premium or not because the edge of the
markets, the investment to me, the man's pretty constant.
The silverware demands pretty constant, the jewelry demand fairly
constant? Yes, they both fell off last year.
I'm well aware.
I read the study twice, but none the less you get the picture.
It's the, the biggest,
Part of the equation is how many investors want to buy silver for the surfer.
Have to go back to the what are considered natural law of the natural
order of things. I mean, they got David, that's one ounce weigh for a pure silver, a
hundred twenty years, go back to 1900 if you didn't know.
And so we didn't have any money, think about how money, whatever
currency there in.
It was sober.
So all I would say I'd wave my magic wand, I do my ride say okay, back
to real money, we go back to Silver.
There's 7 billion plus people on the planet.
There's maybe two or three billion oz of silver on the planet above
ground and investment-grade and that would be divided up among among
the populace, so that's what would happen.
So,
That's just one perspective, but you could also take the other side of
the coin you could say, you know, just make it a chip or make it a
crypt or make it anything you want.
It's just a change so that it is very efficient at times.
It would be inefficient, but once the dust settled, you would be very
used to what the value of silver is versus everything else.
And I want to 13, my cousin had a hundred-dollar bill and back.
Then if it's a minimum wage like a buck 60 an hour, and I saw a
hundred-dollar bill.
And I was like, 39 says, there's $100 of silver right there.
That's a thousand times right there.
And so, what is that in feet up, David?
Well, I had to pay 2500 Fiat to get $100.
So, that's a 25 fold increase.
So number one, that kind of gives you the idea of how much this hasn't
changed.
That hasn't changed.
So what's changed will the paper price has been to God?
Cuz of matter print in the paper money that's still kind of did but I
was a teenager maybe a bit last but you know you can get a gallon of
gas when I started driving for about 25 cents.
A gallon of Dimes worth about 2:50 so two dimes about 5 bucks.
So you're actually on keeping up with the current price of petrol by
Saving and silver because once the adjusted to it, you'd have a
concert, you know, you know, this so much silver is worth so much
bread. That's at the market fluctuations, but nothing like we have now.
I know you're not super young but you're luckier than me.
You wouldn't have to go to financial planner.
You would know that that thousand dollars that you saved thirty years
from now would buy you at least $1,000 of good.
You were 67 years old.
That's a beauty of a sound financial system.