In this interview with Goldcore Chairman, Mark O’Byrne, many key silver fundamentals are discussed. Those fundamentals are even more bullish today than they were when the interview was recorded some weeks ago.
Did you know that before gold was used as money, people were already using silver? It was referred to as “the people’s money” while gold was regarded as “the money of kings“.
In the USA, silver was part of the monetary system up until 1964 and was routinely used in coins. After that date, silver usage in coins was gradually removed. That’s why silver (as in color) coins from 1964 and earlier are worth more than their face value today.
Silver is a reactive metal. Gold is not. Because it is not an inert metal, silver has a wide range of uses outside of its monetary value. It’s used in photography, TVs, cellphones, computers, solar panels, medicine and bombs to name a few. These uses are global and worldwide. And when silver is used in this way, it gets destroyed.
So the overall amount of silver in the world is gradually being reduced. Yes, new silver is mined and that is added to the global stock, but industrial usage is eating up an ever greater percentage of the metal above ground.
In addition to that, investment demand has exploded, especially with people recognizing that the price has bottomed and is set for substantial rises in the coming years. In fact, demand for silver bars and coins has never been higher. New records in customer demand were set in 2015 at the U.S. Mint, the Royal Canadian Mint and the Perth Mint (Australia). Demand looks like it will be even higher, breaking records again, at these mints in 2016.
Demand for physical silver is very high, whether as an investment or in industrial processes.
Once demand reaches a certain level, it will start to outstrip supply. The price of silver will start to rise but, on the flip side of that, with stocks low, delivery times will get longer and longer.
Doesn’t it make sense to stock up on silver today when the price is still low and supply can meet demand?