Excelsior on Silver Always worth checking out here is the latest from ceo's Excelsior.
On September 5, 2021 at 11:01 am,
Excelsior says:
It’s an interesting projection from Lobo Tigre of Silver being dethroned as money, where the name for Silver is synonymous with “money” in a number of countries and cultures; however, even if a gold-backed digital currency is eventually introduced that relegates Ag to only industrial use, then here are a few considerations to mull over:
1) It hasn’t happened yet, and isn’t close to be implemented for years.
So for this metals cycle still playing out over the next few years, Silver will still run in tandem with Gold, and will eventually outperform the yellow metal on percentage basis (like we just saw on Friday about 3:1) Gold was up 1.04% on the day, whereas Silver was up 3.68%
https://www.investing.com/commodities/real-time-futures
2) The Silver industrial demand is only continuing to grow with the transition over to EVs (which is also going to take longer than many projected), with the increase in Solar panels worldwide, and with the increase of technological gadgets. Keith Neumeyer has pointed out several times how much more silver is required for EVs for example, than ICE’s, but think about computers, smart phones & tablets, drones, electric forklifts, eBikes, eBuses, etc…. Silver is a fantastic conductor of electricity and is used in small amounts that won’t cause substitution risk in most electronics even it shot up to $50+, while overall demand continues to grow. There are also growing uses for Silver as anti-bacterial agent in medicinal creams, woven into clothing, and in water filtration that are sucking even more silver out of the marketplace.
3) We’ve heard for 2 decades that SDRs are going to replace the dollar, or for the last decade that digital gold or gold-backed cryptos are going to change everything, and so far that hasn’t happened. We’ve also heard that Gold is over due to cryptos, and while it has taken the shine of Gold for many speculative punters, the whole “drop gold” ad campaign a few years ago ended with a 70% decline in Bitcoin and Gold packing on a few hundred dollars in nominal valuation.
So….. while we are all waiting….. Silver will continue to run higher, and it is likely to break it’s all time high of $49 in this metals cycle, with many eyeing triple digit Silver before it peaks. That would be a much better point to cash in on one’s silver stack and convert to whatever digital currency is finally accepted in a few years. The adoption period for a new global currency like that would take quite some time to implement, and we are nowhere close to that at this point in the cycle, but “The Great Reset” is coming, with a target of 2030, which synch’s up well with your point about the 4th Turning.
4) What would happen to the Silver mining stocks if the metals prices just got up into the $30’s or $40? That seems incredibly reasonable and likely from where Silver has been hovering this year in the $22 – $28 range in 2021.
Just a few thoughts to mull over.
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