A significant number of people are familiar with the term “peak inflation.” It sounds like propaganda at this point. The Biden administration keeps using those terms over and over again in an apparent attempt to play some kind of NLP trick on the general public. Whatever, that’s not what this piece is about; it’s about “peak silver.” What does it even mean, though?
Basically, “peak silver” means the rate of mining of silver has, well, peaked. This indicates that the quantity of silver available has hit a maximum and will now begin to plateau. What follows is typically a decrease in supply because the supply has reached a high point, at which point it cannot be expanded further without incurring a loss in profit.
So why is “peak silver” important?
As we all know, the price of every asset in the world is subject to the law of demand and supply (S&D). I wouldn’t claim that the prices of everything are fully dependent on supply and demand, but I would say that the prices of the vast majority of tradable assets will, in the long run, respect the law of supply and demand.
The more we learn about the magic fuckery about how the market works. The more obsolete and unreliable S&D becomes. Think about how JP Morgan fucked with the prices of gold and silver. Did they mess with the S&D to manipulate the price of silver? Of course not. They use some kind of magic spell behind the scenes in the COMEX; Spoofing! Anyway, that’s just the short-run since it’s very difficult to manipulate the price of silver for a long time. So, in the long run, it’s safe to assume “peak silver” will cause the price of silver to rise because of the shortage. I guess I don’t have to remind you every time that the industrial demand for silver is absurdly high and is only going to increase more. So you have peak supply and higher high demand; isn’t that a perfect recipe for “silver price to the moon!”?
In the end, is this “peak silver” real?
Silver production actually hit a plateau, at least that’s for sure. It’s not easy to mine more silver without increasing the cost significantly. With the supply staying the same while the industrial demand keeps increasing year over year, I can only say that silver is ready for moon exploration in the long run.
First time I will be hearing about the peak silver though
Posted Using LeoFinance Beta
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