by Dr. Jeffrey Lewis, Silver-coin-investor.com:
A long time reader and forum member posted the following with a question regarding silver industrial demand:
“The question that begs an answer, is how will this ultimately effect the monetary value of Silver and does that foretell a change in investment strategies?” (Full comment below).
In a market like silver, where price has not reflected true supply and demand for decades, an interesting syndrome evolves.
It can be somewhat of a curse — and a rational reaction when something seems too good to be true.
We are constantly look over our shoulders for that final clever explanation we overlooked for why current prices may actually be a natural expression.
This cord vibrates loudest surrounding discussion of industrial demand. Again, as our subscriber points out below, there will be at some point replacements for certain uses.
But ultimately, many of the more ‘price-inelastic’ uses will remain for years to come.
(Our silver battery expert pointed out the US military submersible programs are slated for silver zinc batteries for the next 60 years).
Another problem with this curse – or the (natural) resistance for believing in something that seems too good to be true (in large part because we collectively believe the system that created the mismatch is eternal) – is that for silver, investment demand has been essentially stifled along side of price.
When that side of the proverbial coin is expressed in just a small portion of it’s potential… it’s a game changer like nothing else.
At that point silver’s importance as a industrial commodity may pale in comparison with it’s role as a wealth asset or simply money itself.
At that point, COMEX doesn’t matter, though it may ‘function’ as a propaganda tool.
Obviously, many will simply assert that ‘they’ will not let that happen.
As if ‘they’ were unlimited in their power to suppress nature.
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