With the precious metals seemingly trapped in a state of suspended animation, it is nice to come across analysis that digs into the fundamentals of the precious metals, both at the retail level as well as at the source, the miners. For a time, we have seen a steady supply of silver at around $30. The recent push under $30 has almost immediately raised the issue of supply shortages of the white metal.
Physical supply, of lack thereof, continues to be the most compelling reason to hold silver. With this in mind, we were fortunate to come across this fine analysis piece by Tekoa Da Silva which we present here for your perusal and enjoyment.
In this video presentation, Da Silva outlines the cause for continued enthusiasm given the prospects, if you will, for the gold and silver markets based on his conversations with the Perth Mint, who say all of their retail clients are holding their metals in the face of recent downward price action, and an adviser for the BMO group, who is again seeing a dearth of supply on the horizon as marginal mining projects are shelved by producers.
It all adds up to a continuation of the bull market in precious metals, as their production is levels appear to be locked in the face of increasing retail and investor demand for them.
The much awaited spring rally may be just around the corner, or, as Da Silva suggests, an even bigger boom in the precious metals is now baked in the cake.