The IMF, the Davos’s World Economic Forum, the COP21 and COP26, the "Green Finance" and the American "Green Energy New Deal" put a rather brutal end to the era of "all oil" and by extension the petrodollar system. Our economic and political elites want the world to equip itself with "clean energy". This will involve a lot of upstream and downstream photovoltaics, changing a very large number of equipments and products that will have to adapt to new technologies. As a result, the industrial demand for silver will increase strongly.
The Silver Institute tells us that the total demand for silver will reach 1,029 Moz in 2021, for a mining production of only 829 Moz. The deficit in 2020 was already 250 Moz. These deficits are cumulative.
Until 2009 the USGS differentiated between "exploitable reserves" and "base reserves" non-exploitable under current economic conditions, in other words, with the price of silver kept low. Since 2010, the so-called "exploitable reserves" having been exhausted, the mining industry has exploited the "base reserves", while the price of silver has remained at its bottom.
For the USGS, there are 500,000 tonnes of silver reserves in soil, for an annual mine production of 24,000 tonnes. It means 20 years of reserves. But production is already insufficient to meet current industrial demand, which is likely to double.
Indeed, in an interview with Kitco, Philip Baker (CEO of Hecla Mining) said that the demand for silver would reach 2,000 Moz in the coming decades to meet the demand for clean energy. To meet this demand, a tens high-potential silver mines would have to be opened.
The quantity of reserves is not fixed. To increase these reserves, it is necessary to undertake geological research, which is expensive and takes a long time. Once exploitable veins are found, it takes between 8 and 10 years for the mine to come into operation.
In the video "Live From the Vault" Episode 52, released Friday, November 12, Andrew Maguire interview Dave Kranzler, chairman of a hedge fund specialized in precious metals and editor of a mining journal. Kranzler is therefore very familiar with mining companies and junior explorers. A few days earlier, the CEO of a junior mine repeated to him that “even if the price of silver triples, it will not change the data of this shortage. To develop a mine, it takes about 10 years. So the silver shortage, which the world will experience in 2022, could last 10 years."
This is exactly what this Boursorama said on July 7, 2021. In this program, the specialist Benjamin Louvet explains - when commenting on the latest report from the International Energy Agency - "each solar panel consumes 5 grams of silver. In 2020, the photovoltaic industry consumed 101 Moz (3,142 tonnes), or 13% of the world's silver mining production. To succeed in meeting the commitments of the Paris agreements, this quantity will have to be multiplied by 5 every year". A little further on, he quotes the boss of one of the biggest copper mines, who says: "even if the price of copper doubled, to succeed in increasing the production of our mines, we would need 8 years".
The price of silver has so far been maintained at the cost of production of the few mines exploiting veins with very high white metal content.
Exploring, finding new veins and new reserves, is very expensive and is a very long-term investment. At current prices, financiers are too cautious to invest over a period of 15-20 years, while prices are completely capped by the banks to defend the system of fiat currency. But without these investments in exploration, it will be just impossible to meet the goals of green energy, especially solar energy.
This is why the authorities mentioned above and the highest monetary authorities have decided to change the situation.
The silver will be revalued very strongly in a few months, and it is the banks that capped the prices which will participate in the opposite manipulation. It is certainly for this purpose that Standard Chartered Bank, one of the “Market Makers” of COMEX, bought in advance and paying a high premium all of the 2022 production of Maguire's two main suppliers (see "Live from the vault - Episode 52").
On Tuesday November 9, as Maguire called his various suppliers in search of silver, one of them told him that Standard Chartered Bank has just bought in advance all the silver that will be produced in 2022. In a later video, on the Wall Street Silver channel, he says he had the same speech from a second very large supplier. The Standard Chartered Bank bought him all the silver production to come in 2022.
Standard Chartered is certainly not the only bank working to completely dry up the market right now.
It is also known that India, which had been relatively absent from the market for the previous 13 months, imported 665 tonnes of silver in September and 907 tonnes in October. Which is considerable.
In "Live from the vault - Episode 50" Andrew Maguire reveals that Turkey has just raided all the silver available from wholesalers and refiners, paying a premium to be delivered before the other customers, and buying all the production of the 2 remaining months in 2021. Maguire speaks of 400 to 450 tons.
Given the current collapse of the Turkish lira, which lost nearly 50% of its value against the dollar in 10 months, the demand for dollar, euro, gold and silver is huge in the country.
The Wall Street Silver, which had triggered a 15% rise in prices at the end of January, while they were only a few tens of thousands of members at the time. Today, they are 170,000. As soon as silver prices show a clear upward trend, a part of the 12 million members of r/WallStreetBets forum will come to strengthen their numbers.
The 3-digit Silver?
The current silver price does not correspond to anything.
The World Gold Council claimed in 2018 that there were 99,321 tonnes of gold in the form of bars or coins.
According to the World Silver Survey 2018 (page 38), there were 86,651 tonnes of silver in stock in the form of coins or bars.
Silver existing above ground is rarer than gold, because the metal released from mines is destroyed by its industrial uses.
In the United States, the “Coinage Act of 1792” had set the gold-silver ratio at 1/15. In 1803, when Napoleon Bonaparte created the monetary system that would prevail in Europe until 1926, the ratio was 1/15.5.
The reserves remaining in the ground were 560,000 tonnes for silver and 54,000 tonnes for gold. That is to say, a ratio of 1/10.3.
If we take the statistics of the BIS published on 11/17/2021, the ratio of gold / silver derivatives is 1/8.4.
The current gold to silver price ratio of 1/76 is an historic outlier.
This ratio should be divided in the coming year. This means that whatever the progression of future gold prices, your capital invested in silver will earn you more.
The Economist had announced the monetary reform for "around 2018", with the Phoenix reborn from the autodafe of existing fiat currencies. The monetary creation of recent years and in particular of 2020 gives a hint of hyperinflation (chart of M1). Since February 2021, the data is no longer updated.
Whether it is on the IMF website or that of the WEF in Davos, there is talk of "reset". For the IMF it is of course about resetting the international monetary system, adding that the pandemic is "a narrow window of opportunity to be seized.” Remember that Christine Lagarde already talked about "reset" at the 2014 Davos Forum.
"In March 2021, the Executive Board delayed the next review of the SDR valuation basket to July 31, 2022 effectively resetting the five-year cycle of SDR valuation reviews. With the next review to be completed by mid-2022, the new basket will become effective on August 1, 2022."
COP21 and COP26 have deadlines which imply immediate action to seek new reserves and therefore to greatly revalorize the price of silver.
The numbers that I have heard are so staggering that there is something to be terrified of the currency devaluation it entails.
We have been warned. You have very little time to protect yourself with physical gold and silver. We must act now without putting off until tomorrow.
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