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18/08/21
13:49
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Originally posted by goldbear77:
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silver is not abundant - which is why mined grades of silver have collapsed in past 20 years used to be no one went primary silver mining without +500g/t resource - now it's +150g/t the price difference is a dynamic not a constant the big depresser of silver as a structural price support was when traditional photography was displaced at same time as monetary demand for PMs evaporated in the 1990s now electrification + monetary demand has made the reverse of that but the key to silver price is always its role as poor man;s gold. gold hasd to be in a bull for silver to close the gap but at a geological level silver is roughly 20:1 more common than gold you are absolutely right about byproduct supply though. but you dont want silver unless money demand is high - and when it is industrial demand isnt relevant to price industrial silver demand is 95% price inelastic - because its usage is very small as a cost input per unit - or its irreplaceable, mainly in applications requiring optimal conductivity
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Another thing which has collapsed is the price of silver. Eight months into "the biggest short squeeze in the world", and the price of silver is still steadily moving lower.