Your mileage may vary!
I don't challenge the likely increase in silver. It's probably going to go up. And it's going to go down. The question is when. I agree silver is probably a good investment. As is gold. With stocks and bonds, it's best to go long. You never want to put all your money into something you need to sell because you suddenly need cash. Your need for cash may come at a time that is not opportune - when the overall market or the commodity you bought is down. You can make money on pork bellies too.Disclaimer: I am NOT an expert on any of this shit.
I see gold and silver "decoupling," as it were. Historically, they have both gone up and down together. Here's why I see silver forging its own path from here forward. (I could be wrong!)
Gold has long been the "gold standard" (so to speak!) in precious metal investing. I think that's about to change. Silver is going to outperform gold in a very big way. Possibly. Or I could be totally wrong!
- Silver is coming under a HUGE increase in demand due to industrial applications (that gold simply doesn't have). Silver, being the most electrically and thermally conductive metal on the planet, is increasingly being used in electronics, computers / super-computers for "AI" and data centers, batteries, solar panels, etc.
- Silver production cannot be ramped up like gold or other metals. Production is largely limited to what they can extract as BYPRODUCTS of other metal refining industries. Up to 80% of silver production comes as a byproduct of other industries. Only about 20% comes from dedicated silver mining operations.
According to Grok, there are only 20 - 40 primary silver mines in the world:
- This scarcity reflects geological realities: pure silver deposits are rarer than polymetallic ones, making byproduct production the norm. For context, total world silver mine output is around 820-830 million ounces annually, but primary sources contribute roughly 230-250 million ounces.
- China, which produces 13% of the silver globally, declared silver as a "strategic material," and is limiting exportation of it starting January 1, 2026 (tomorrow!).
More from Grok:
- China produces only about 13% of global mined silver (second to Mexico).
- However, China controls an estimated 60–70% of the world's refined silver supply/capacity. This dominance comes from its massive network of smelters and refineries, which process not just domestic mined silver but also imported concentrates/doré (semi-refined material) from other countries. Much of global silver starts as a byproduct of lead, zinc, or copper mining, and China's base-metal industry gives it a huge edge in recovering and refining that silver.
- Because so much of the world's usable (refined) silver flows through Chinese facilities—and a large portion is historically exported—the new export licensing rules (effective Jan 1, 2026) can significantly disrupt global availability.
It's best to be diversified and not have all your eggs in one basket as they say.
I don't challenge the likely increase in silver. It's probably going to go up. And it's going to go down. The question is when. I agree silver is probably a good investment. As is gold. With stocks and bonds, it's best to go long. You never want to put money into something you need to sell because you suddenly need cash. Your need for cash may come at a time that is not opportune - when the overall market or the commodity you bought is down. You can make money on pork bellies too.
My father had a friend and colleague who in the late 70's was convinced the world was coming off the tracks. Sound familiar? He put all his money into gold. I mean like every cent he had. Thus the reason for posting the chart of 1980-1999. He was in his 50's at the time. Preparing for retirement, which was also contributing to his anxiety about his nest egg. He turns 65 and his gold is worth half what he paid for it. he was pushing 70 before it began to recover. Bad investment? Not really. Just bad timing. People who try to time the market and engage in a lot of buying and selling usually lose money. Those who like the thrill of all that are better off playing in the money market and trading currencies on FOREX. I've dabbled in that with a small amount of money. It's kind of fun when you get into it. You can make good money doing it too.
Nothing beats silver in that role. Anything else is a compromise.The other factor is that investors (and BANKS) have bought orders of (paper) silver that don't exist and CAN'T be delivered. That's a HUGE problem.
The exact same thing is true of gold. In a true SHTF situation, gold will have ZERO value as a currency. You going to buy bread with gold? Nope! It will be a barter system in which no metal (except lead in the form of ammo) will have any value at all.
Bank safety deposit boxes got robbed in Germany over the Christmas break. I think the boxes were only insured for $21,000 or something like that. Bank is closed and people are pissed...
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Best conductor means nothing. Best isn't required. Modern techniques for using copper are making advances in replacing silver in electronics. Mostly because silver is becoming less unavailable or is priced out of sight. Nearly all invention and innovation is driven by these conditions. The photographic film industry was one of the biggest consumers of industrial silver. That huge industry was obliterated by technical advances. 20 years later, all but gone.Unless a new (abundant) elemental metal is discovered (unlikely), silver will remain the best electrical and thermal conductor on the planet. And EVERYTHING is "going electric".... riiiiiiiiiiiiiight?
The other factor is that investors (and BANKS) have bought orders of (paper) silver that don't exist and CAN'T be delivered. That's a HUGE problem.
Tulips had no industrial application.
The exact same thing is true of gold. In a true SHTF situation, gold will have ZERO value as a currency. You going to buy bread with gold? Nope! It will be a barter system in which no metal (except lead in the form of ammo) will have any value at all.
It's been a curious human behavior... why gold has always been so valued. Plenty of things in our world are rare.
Didn't the same thing happen with pearls?
Yep. Gemstones too. Especially those that can be made in a lab. Emeralds and rubys. See video
