Louis Cammarosano: All About Silver

On February 20, OilPrice.com published an article about Africa bringing 1.1 million homes online with solar energy. This, naturally, got me all fired up as the demand for silver seems to be going up every time you turn around. China, India and now Africa all working on these massive solar infrastructure projects that require, literally, tons and tons of silver to produce the solar panels. This is to say nothing of the all wiring and connections that will require a small amount of silver as well. When you are talking about a couple of hundred million homes stretched out over three countries all going solar, well, if you’re a silver enthusiast and you can’t get excited about that, drop me a line and I will be happy to relieve you of your silver coins, bars and rounds.

Where is silver going to come from?

While mining production in 2015, appears to be up slightly – final numbers are not in just yet – if seems like this trend could reverse in 2016. The miners have been stripping the mines of all their silver due to the low acquisition cost of silver in the market place. With silver trading between $14 and $15.50 an ounce (as of this publication it is $15.13 per ounce) for most of 2015 the miners were forced to produce as much silver as possible just to keep the operation moving. This can not go on for much longer. The laws of economics say this is not sustainable; it is very difficult for any company trading/selling any product to have “fire sale” as their business model. It has to end badly and end more sooner than later. The “fire sale” business model has now been in effect for almost 3 years. How much longer can they hold out?

Louis Cammarosano, Smaulgld, and I sat down to discuss what is going on with the silver market.

In our discussion we cover how much silver is currently being mined, how much demand for retail investment that we can document and tie this together with some historical data that puts it all into perspective. If you don’t some silver coins, bars and/or rounds, now might be a good time pick some up.