Silver - Hang on for the Wild Ride!

 

Don’t Forget the Silver Users

So if it’s not a sharp rise in the price of silver that would set off a user buying panic, then what would? Delays in any normal silver shipments to users. Particularly in our just-in-time manufacturing and inventory management world, any growing delays in silver shipments to manufacturers would, at some point, cause them to panic and rush to establish extra physical silver inventories to guard against future delays.

 

If you think people may have overreacted and panicked in rushing to buy toilet paper at the outset of the pandemic,

 then multiply that by a thousand when the manufacturers of products needing silver react to delays in physical silver deliveries.

It will be every purchasing agent pitted against each other. Yes, this panicky reaction will be self-reinforcing and will make matters worse, but, unfortunately, it is fact of life in the collective human condition.

DYI:  This is a distinct possibility in pushing up the price of silver as investor’s need a hedge against dollar debasement and manufactures need for the metal collides.  A price explosion to the upside could very well happen.  Silver remains a good buy especially with the Gold/Silver Ratio remaining positive for silver at 73 to 1 and overall winner for the metals in general with the Dow to Gold Ratio remaining at a positive 14 to 1 ratio.  The metals to put it bluntly have a lot of upside left in them.  However the ride to the upside will be volatile so hang on for the wild ride!

DYI