donderdag 5 mei 2016

Silver Deficit Increases in 2015

I'm betting a lot on silver at this moment, not just because the gold silver ratio is at multi decade highs, but also because of the supply and demand figures.

The silver institute just released the latest 2015 numbers. 2015 saw an increasing deficit at 112.5 million ounces.

This is what it looks like historically. When deficits increase (blue chart goes down), then the silver price will start spiking a few years later.

As you can see, the supply has gone down in 2015 due to lower scrap supply and I believe silver production from mines will not rise significantly in 2016. So supply will be subdued going forward. Demand however will keep going up. We saw a demand increase in 2015 from 1131.9 million ounces to 1170.5 million ounces, that is a lot. Deficits increased to 112.5 million ounces in 2015.

Going forward we expect that deficits in silver will only become worse. 200 million ounces by next year, then 250 million ounces by 2018, then 300 million ounces by 2019. By 2020, there is no silver left at these low prices.
So I would keep on stacking silver and in exactly 5 years, you will be rich. I recommend buying silver miners like Endeavour Silver. They just released earnings and they are very profitable at this moment.

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