{"id":29295,"date":"2017-12-31T11:27:04","date_gmt":"2017-12-31T16:27:04","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29295"},"modified":"2017-12-31T11:27:04","modified_gmt":"2017-12-31T16:27:04","slug":"how-the-investor-fundamentally-changed-the-silver-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29295","title":{"rendered":"How The Investor Fundamentally Changed The Silver Market"},"content":{"rendered":"
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How The Investor Fundamentally Changed The Silver Market<\/a><\/h3>\n

While silver investors continue to be discouraged about the low price, the market has experienced a fundamental change that needs to be understood.\u00a0 Ever since governments removed silver from official coinage, over 50 years ago, the market has been supplemented by several billion ounces of silver.\u00a0 The majority of that supply has been depleted.<\/span><\/p>\n<\/header>\n

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The reason the United States and other countries stopped producing official silver coinage wasn\u2019t due to any monetary conspiracy; rather it was based on a straightforward\u00a0problem; supply versus demand.\u00a0 Because industrial silver consumption had skyrocketed after World War 2, the silver market would have suffered deficits if the U.S. Treasury didn\u2019t sell silver into the market.<\/p>\n

It was quite\u00a0simple; there just wasn\u2019t enough silver to go around.\u00a0 So, governments started to reduce, then eliminate silver from their coinage in the 1960\u2019s.<\/strong>\u00a0 A lot of this silver, known as \u201cjunk silver,\u201d was either purchased by investors or remelted and sold back as supply into the market.\u00a0 While there is no way of knowing how much of the older official junk silver remains in the market, the majority of it was recycled for much-needed supply.<\/p>\n

We can see the dwindling down of government stocks and older official silver coinage in the following chart:<\/p>\n

\"\"<\/p>\n

The BLUE<\/strong> bars represent silver scrap supply, and the OLIVE<\/strong> colored bars show the amount of net government silver sales.\u00a0 From 2000 to 2013, governments sold 636 million oz (Moz) of silver into the market.\u00a0 Net government sales were from stockpiled silver and older official coins.\u00a0 However, in 2014, this supply totally dried up.\u00a0 For the past four years, there haven\u2019t been any government silver sales.<\/p>\n

Another interesting aspect of this chart is the declining amount of silver scrap supply.\u00a0 Even though the price of silver during the 2015-2017 period was much higher than from 2000-2007, scrap supply is considerably less<\/strong>.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

How The Investor Fundamentally Changed The Silver Market While silver investors continue to be discouraged about the low price, the market has experienced a fundamental change that needs to be understood.\u00a0 Ever since governments removed silver from official coinage, over 50 years ago, the market has been supplemented by several billion ounces of silver.\u00a0 The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10397,379,3286,17730,17726,17729,647,17727,730,17728,12073],"class_list":["post-29295","post","type-post","status-publish","format-standard","hentry","category-economics","tag-coinage","tag-government","tag-investment","tag-junk-silver","tag-monetary-metals","tag-official-coins","tag-precious-metals","tag-scrap-metal","tag-silver","tag-silver-supply","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29295"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29295\/revisions"}],"predecessor-version":[{"id":29296,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29295\/revisions\/29296"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}