4 Reasons To Stack Silver
- The majority who buy silver derivatives are speculators. They’re in it to make a quick buck. And naked short selling occurs all too frequently. When you short an asset, you want the price to decline. Short sellers sell what they do not own. They make a profit when the price drops and they can buy it at a lower price. So, speculators are driving the price of silver rather than free market supply and demand. Now we know the Comex is losing more and more silver as a lot the Asian countries are taking physical delivery, but the short sellers, and this is my opinion, are still keeping the price down.
- If prices are pretty stable, we should expect supply and demand are either the same or increasing at the same rate. But what’s happening is the demand is going up for the contracts but rather than the letting the price rise, we know that they are increasing the supply of these contracts for the increased demand and it keeps the price in a fixed range.
- Industrial Demand -Silver is used in almost all the big industries. Everything from medical, electronics car batteries. It’s the most conductive metal there is. Industry takes about half of all the silver demand.
- The gold to silver ratio. I know a lot of people have talked about this but to put into perspective today the silver price is anywhere from 65-90 times the gold price. This makes no sense. Especially when we think about how silver has about 15 times gold’s supply. To add more credence to this argument, silver is more heavily used in industry and right now used silver is not recycled.
Bonus Reason: Financial reasons. It’s insurance, a Storer of Wealth, Liquid, and good to have in a SHTF scenario.
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