News

Steve St. Angelo, SRSrocco Report: Silver Will Move the Most of All The Metals - Rory Hall

Logo - Sprott Money News from the Archives

June 3, 2016

When you sit down with Steve St. Angelo, SRSrocco Report you get the idea the conversation could cover the world. Steve’s work is focused on energy, mining and precious metals, three interconnected markets, but very different in nature.

The past several weeks I have had the pleasure of speaking with a great many people about silver, which provides a great overview from different perspectives as to the health of the current situation with both silver and gold. When looking at the demand side of the precious metals markets, one must take into account that these markets are rigged by the bullion banks. This was recently confirmed by Deutsche Bank admitting, in a court of law, they had been rigging both markets. Deutsche Bank also named two other banks in the rigging of these markets.

This is Steve’s take on the reason for market rigging

The reason I believe the markets have been manipulated is because Wall Street and the U.S. government have bamboozled Americans as well other governments across the world to force their citizens to put their money or funds; since the 1970’s, let’s say 1980, pushed them into putting their funds into paper assets. That’s the manipulation. Steve St. Angelo, The Daily Coin

The silver market has several completely separate dynamics impacting the market; all converging as you read these words.

  • China, India and Morocco have massive solar energy programs with a combined plans for more than 150 million homes in the three countries
  • Supplies from silver mines are slowing – 2015 mine supply totaled a mere 2% growth as mines were high grading (the easiest, readily available) and digging out as much as possible due to the low price of silver – this should translate to lower production in 2016
  • Electronics companies are taking delivery of silver directly from silver mines
  • China is purchasing or acquiring controlling shares of mines, both gold and silver, around the world
  • American Silver Eagles and Silver Maple Leafs are on pace to set new all time sales records for the third and second consecutive years, respectively.

These mining operations are dependent upon steady supplies of inexpensive energy (e.g. cheap oil). For the time being, mining operations are able to cut cost due to the global oversupply of oil. This will not last, as oil reaches markets and is either stored for future use or delivered into the market place. How much longer will this continue? You will have to confer with the so-called “market makers” for that information.

As energy return on investment begins to dwindle the impact on the mining industry will create slow downs and/or shut downs of the weaker operations leaving only the big players with very deep pockets to continue mining precious metals. The implications of this aspect of mining is yet untested, however, as the year progresses this picture will become ever clearer with more mergers and acquisitions or mines simply shutting down as the current price of silver does not produce enough profits for these mining operations to continue.

Where will future silver supplies for manufacturing come from? How will these giant technologies companies, like GE, Samsung, Apple, etc, continue producing their silver dependent products?

it will happen one of two ways: either these companies will get into the mining industry and begin purchasing mines, or they will go outside the traditional channels and begin forging alliances directly with silver mining companies. You won't stop producing televisions, cell phones and the like because you can’t source $1.00 worth of silver! You will figure out a way to acquire the silver and maintain that source as long as possible. This is exactly what is happening. This change has only occurred with the more progressive, forward thinking companies, but it would appear this will become more widespread over the next 1-2 years as the mining industry continues struggling with the unnatural low prices of precious metals.

 

Product Upselling Spotlight

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More
about-sprott-skyline
no_comments

Looks like there are no comments yet.