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Analysis

Silver supply crunch: Goldmine for investors [Video]

Silver, the world’s most versatile metal, is facing a demand like never before - and the supply just can't keep up. Peter Krauth explains why it matters.

In the latest conversation with Andrew Maguire on Live from the Vault, Peter Krauth, lays it out plainly: silver is on the edge of a massive supply squeeze, and the resulting scarcity could send prices soaring. A 20-year veteran in precious metals and author of the bestselling book The Great Silver Bull, explains why now is the time for savvy investors to take a closer look at physical silver.

With demand skyrocketing and supply dwindling, silver presents a rare opportunity to gain a foothold in a market brimming with true profit potential.

Timestamps:

  • 00:00   Start
  • 02:22   Big moves unfolding in silver
  • 06:30   Silver Juniors, ETFs, and long-term chart analysis (back to 2016)
  • 09:50   Why silver is breaking out of its constrained range
  • 19:25   Silver supply depletion driven by solar and tech demands
  • 29:40   India’s rising influence on the global silver market
  • 33:33   AI expansion and new energy demands reshaping the market
  • 41:40   Now is the time for investors to take a closer look at silver
  • 49:50   How high can silver prices really skyrocket?
  • 57:40   About Peter’s silver investment newsletter

Silver’s supply is running on empty

Krauth highlights a concerning trend: industrial demand for silver has tripled since 2020 while global supply struggles to keep pace, with mining output lagging by 20%.

As industrial needs rapidly consume remaining reserves and drain major silver inventories, silver resources may be depleted within just a couple of years, placing the world on the verge of a genuine supply crisis.

From solar panels to tech gadgets, silver’s role in everyday life is expanding, yet we simply can’t mine enough of it to meet demand.

The growing demand for silver

Why all the fuss about silver? Simply put, it’s a metal that powers the future. Krauth points out that the explosion in green technology - solar power in particular - has made silver the unsung hero of the renewable energy revolution.

Governments and corporations worldwide are doubling down on solar power, and this commitment has turned silver into a metal in sky-high demand. India, for example, has massively increased its silver imports, driven by its ambitious solar projects. This isn’t just a trend; it’s a long-term demand shift that shows no sign of slowing down.

Then there’s the tech sector, from the smallest microchips to massive energy storage systems. Tesla is already securing silver directly from mines for its energy projects, and companies like Samsung are using it in emerging tech like solid-state batteries. This trend is only picking up speed as industries realise they can’t risk not having silver when they need it.

The perfect storm for the price surge

As Peter Krauth explains, silver’s price is set to explode when demand overtakes supply. Krauth even compares the silver market to uranium a few years back - where prices skyrocketed as demand quickly outpaced availability.

Right now, the silver market is showing all the signs of heading in the same direction, with growing industrial usage and depleted secondary supplies pushing it to a breaking point.

Krauth suggests that we may now be on the verge of seeing silver’s price smashing through the new ceiling, creating a new floor above $30 and stabilising there as the base price  – and that’s just the beginning if demand continues its upward surge.

Now is the time to watch silver closely

Krauht notes that this might be a unique opportunity for investors. When a precious metal gets this squeezed, prices can soar and those who got in early reap the rewards.

Drawing from his experience with similar setups, Peter’s track record shows that acting in these critical moments pays off. With demand set to surge and supply dwindling fast, now may be the time to pay close attention to silver.

The bottom line? Silver is headed for a shortage that could set its price soaring. So, if you're considering an investment in precious metals, it may be worth exploring whether silver could become your golden ticket.

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