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angus

There is NO silver shortage - Stop the myth - WHY are you still stacking silver ???

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hi guys,

i have done my research on silver and realised that there is an abundance of this element.

Here is one of the videos on it: 

 

 

Why are you still stacking silver if there is an abundance of it?

 

Please feedback :)

Edited by angus
edit

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Haven't watched the video so maybe my comment will sound ridiculous.
I'm not sure the problem lies with the mineral abundance but more the cost of getting it mined and processed.
By comparison we are sitting on swathes of the finest coal underground but it will never be mined.

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Its not the rarity of an element that determines its price.

The supply of every element is infinite as far as our lifetimes are concerned, supply of every element is infinite, the rarest metals are infinite. How deep can we dig, how ingenious are we and what does it cost to extract those elements. Put simply the question is only; what does access to the infinite supply cost in energy. Is it worth it or are there alternatives? Silver is not valuable because it is rare. Oxygen is not worthless because it is abundant. Is there an alternative to oxygen?

Silver has utility. The energy to mine it has a cost. Demand for that utility vs cost of that energy, will determine supply. And the combination of all of those factors in balance, and many more beside, determine the price. The relative rarity of silver to other elements, you are right - who cares. It matters absolutely nothing. 

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Even if there is an abundance of silver it still has to be mined, given the mergers of a couple of the majors recently and the demise of a couple of the minors combined with the tendancy in todays cheap money climate to keep shareholders happy through stock buybacks rather than actually improving performance this gives me hope.

As does the lack of exploration, apparently it takes 10 years from discovery to producing the first ounce on average and the absolute quickest time on record is 7 years.

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There’s no shortage of currency, why are people still keeping the currency in the bank or under their mattresses?

It is still a human belief system. It to be useful in the financial system of society. You have a tool to exchange your labor time for worldly goods or services.

Silver has a utility purpose. If it doesn’t serve you, I am sure you wouldn’t want it in your world.

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In 1980 silver hit just under $50 oz ($153 adjusted for inflation in todays money)

39 years later there is obviously a lot less to pull out of the ground but we are now at just over $15 oz, seems there is a significant upside potential.

 

Some interesting pricing information that shows silver is currently on sale:

image.png.0769fd6ed094953159b611626d704e94.png

Edited by mr-dead

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You started a thread about 10oz Canadian Mint bars on 10th March - (less than a week ago) - you said you were considering getting 10 of these bars. If you believe the logic of the video and that we are awash with silver, then why would you consider doing that?

How does anyone know there are 1.4 trillion of tonnes silver in the Earth's crust? No-one can know this. Since only a tiny fraction of the Earth's crust has been tested it is just a guess, it is less than a guess.

At current prices only a tiny fraction of the silver could be extracted - most of the Earth is covered by the oceans. What cost mining at the bottom of the Atlantic, 25 miles beneath the ocean floor and then getting the silver back to a refinery? $100's if not $1000's per ounce. Most of the Earth's silver is completely uneconomic.

Imagine the cost of extracting the (theoretical/plucked out of thin air) average of 0.075g of silver per tonne of Earth's crust. That means you would have to sort through 414 tonnes of material to get just 1oz of silver. The cost of extracting, shifting, refining and then producing a 1oz silver coin would be many multiples of the current price. This is where this sort of video is as empty headed as those making out silver is going to shoot to $600/oz by Christmas.

No wonder the comments have been disabled on youtube for this video - i expect it was getting a lot a flack just as it deserved.

Edited by sixgun

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2 hours ago, angus said:

i have done my research on silver and realised that there is an abundance of this element.

I have done my research to and Mike " I own a gold and silver company" Maloney - said its going to da'moon - SO THERE ! 

 

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"Why are you still stacking silver if there is an abundance of it?"

So your assumption is that the people here are stacking silver because they believe there is not an abundance of it.  Silver IS money and it IS a store of wealth, always has been and always will be. For some its a hobby, for some its a store of wealth to protect what they have worked for since the value of silver and gold is intrinsic.

That video is full of logical fallacies including, but not limited to:

Appeal to probability

Argument from fallacy

Existential Fallacy

 

By trying to prove Ted Butler wrong does not prove a counter point. Over the last 16 years there has been a deficit of silver in what was mined compared to the actual demand. The silver institutes charts clearly shows that. In turn, a yearly deficit will deplete above ground reserves year over year eventually leading to a shortage based on demand. Mines are breaking even at the current silver prices, future exploration is halted because of a lack of profits. For the most part mining for silver is price insensitive since it is a bye product of lead, zinc and copper mining. If there is such an abundance of silver in the ground(which in itself is a claim that it can easily be mined and put into above ground reserves) why do we have a mining deficit year after year? Based on the claims in the video above ground supply should far outweigh demand since there is such an abundance in the ground. Some of the research I have been reading is showing that the actual silver content of the ore is decreasing which in turn means the same amount of mining costs for less silver.

Like Sixgun said, NOBODY knows how much silver is still in the earth except for GOD himself. Test drilling only gives an idea of content in a particular area.

Don't base your research conclusions off of YouTube videos. There are nuggets of truth in some youtube videos but you have to chew up the meat and spit out the bones so to speak. Folks that end up on the far end of the spectrum on any matter are usually wrong showing that they have an internal hidden agenda.

Edited by STONE

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1 hour ago, Paul said:

I have done my research to and Mike " I own a gold and silver company" Maloney - said its going to da'moon - SO THERE ! 

 

Or, maybe he sells PM's because he believes it will increase in price. Just because someone sells a product doesn't mean what they are saying isn't true. Sure he plugs his business sometimes at the end of his videos. As a contractor I do the same thing, every time I shake a hand I give out a business card. Does that make my knowledge of carpentry null and void?  As a master carpenter I think not. He doesn't make a whole lot on PM sales. The margins are small...

Edited by STONE

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I like buying one of each bullion coin from various nations for as a collectors hobby. I like buying certain rounds that I find particularly attractive, also as a collector's hobby (observing a personal rule that I don't spend more than 1.5x the melt, necessary to keep my hobby from becoming "excessive"). Never was, never will be a stacker. However, that said, it does seem to add up - doesn't help I have a fondness for 10oz pieces like the QB. 

I think that most folks will buy precious metals for the same reason now as throughout history - they are shiny. 

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There is an abundance of silver and gold...but...the population of the earth doubles very quickly and so what is in abundance is going to be less and less ounces per person...so what do you think will happen when people have less and less of a substance?....it tends to go higher...just like water will, just like food will  just like land will...you will have more people seeking something so the price will rise as will the land to live on,to grow on, etc.

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5 hours ago, angus said:

hi guys,

i have done my research on silver and realised that there is an abundance of this element.

Here is one of the videos on it: 

 

 

Why are you still stacking silver if there is an abundance of it?

 

Please feedback :)

Why do you assume that the people of silver forum stack?...if we did then we'd buy and not care what they were but how many we can afford...we don't seem to see many of us buying monster boxes...because we collect more then we stack.

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For me, I stack silver because silver has real value. It has been used as currency since tie time of Christ and was The United States first currency used in trade. The price of silver is attractive to the common working man and will retain its value far better then paper currency.

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14 hours ago, Goldhooked said:

What’s going on lately?! Another new user who thinks watching a few YouTube videos makes them some sort of expert :D 

I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."

Just replace "The Force" with "YouTube" and it all becomes clear.

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1 hour ago, Bullionbilly said:

I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."

Just replace "The Force" with "YouTube" and it all becomes clear.

Brilliant

More like TV (I'm referring to the not so free, freeview or freesat).

Full of people with qualifications pretending to be dumb.

 

Edited by RoughDog

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5 hours ago, FoolzGold said:

I'm reminded of Obi-Wan Kenobi explaining the Jedi mind trick to Luke: "The Force can have a strong influence on the weak-minded."

Just replace "The Force" with "YouTube" and it all becomes clear.

Goebbels and Hitler couldn't even dream of the mass-propaganda media we have today.  Not just radio: but TV, internet, etc.

Also, as others have stated, silver is a store of wealth.  That's why I like it.

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