Silver: Bullish Back-to-Back Reports Show Silver Is Ready To Rip Higher
A potential spike in the price of silver is in ongoing development from the fundamental side, and the fundamentals will soon have to come to terms with the reality of math.
Silver use in the solar industry and other solar sector technologies increased 34% in the under-reported Silver Institute report from May, 2017. The report shows that year-over-year demand in solar surged from 57.2 Moz to 76.6 Moz. Both reports can be found from their bi-monthly news releases page right from the SI website.
While the quality of data may be questionable, it is hard to say if the data is overstated or understated at any given moment according to even the best of precious metals analysts, so if we take the data at face value, 34% represents a massive surge in industrial use. Solar is one of the industries where silver is consumed, and that silver use does not get recycled, so the supply leaves the market and doesn’t come back.
Secondly, supporting the bullish case for potential silver price spike is that less actual physical supply is available, both from the mines down-under the earth’s surface, and from scrap as fewer and fewer people are handing over grandmas silverware or that ring they bought from the Renaissance Fair.
From their follow up report in June, 2017, the institute has restated the physical silver supply shortage facts once again, and they included this handy chart:
Physical silver supply is down notably.
Earlier today, we reported that the mining supply of copper is now falling too, which accounts for most of the silver supplied from mines.
This brings us back full circle to the double-bullish case that slowly but surely is developing out of the Silver Institute. Yes, they are often times targeted with the not unjustified scrutiny of silverbugs around the globe. The math problem, however, looks like it is close to being solved. Their next report comes out this month, and regardless of any conflicts of interest issues or ulterior motives undeclared, if this one is bullish, as in now they have completed a triple-bullish trifecta of fundamentals even if they are one of the most despised silver “advocates” around, silverbugs might just want to take the cue.
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