by AGXIIK and Renozep, TF Metals Report:
Here’s another free, public guest post from AGXIIK and his “editor”, Renozep. Please read and consider and, if you find this helpful, please pass along the link to others.
Silver Supply And Demand (The New Samsung Battery Could Be A Gamechanger), by AGXIIK and Renozep
Renozep, my fellow writer and editor sent me a brief article on Samsung’s new EV battery that was amazing and even a bit shocking in the scope of how it could change the world’s perspectives on EVs.
TRUTH LIVES on at https://sgtreport.tv/
Silver was noted as an important element of the story. The Samsung battery uses 1000 grams or 2.2 lbs of silver as opposed to a negligible 5 grams today. 2.2 lbs or 32 ounces of silver could rock the world of silver miners and anyone involved in that trade. Stackers and investors in silver mines might find this news important, too.
A snapshot view of silver supply and demands tells two stories, both distressing.
From 2015 to 2023 silver production DECREASED by 44 million ounces. 2024 will show 1003 MOZ production, a further 7 MOZ decline. This is the wrong direction.
From 2015 to 2023 silver demand INCREASED 130 million ounces to 1195 million from 1065 ounces with 1219 MOZ demand expected in 2024.
While a good development if you’re a manufacturer using silver in your goods, silver shows a 219 million ounce deficit in 2024. If that wasn’t bad enough imagine what we’ll see in 2025 when the Samsung battery hits it stride.
For 10 years, the talk was about how solar panel demand in China and India would cause big silver shortages. That one main theme said silver prices should skyrocket as the demand and supply of silver diverged. Ten years later, silver is still stuck in neutral despite a 219 million ounce deficit.
Whether this new battery will move the needle is speculative right now but if solar panels and other commercial uses of silver caused the present day supply deficit, what happens when demand continues to ramp up. Right now we have a 219 MOZ deficit while silver production drops.
As bad news goes this is really bad but it could be an even bigger deal in a few years or sooner if the X axis of production and the Y axis of demand go sideways and we have a critical supply deficit.
A continual and dramatic widening of this gap, as production continues to drop and demand ramps upward; what will this say to the silver producers, bullion banks, government actions to protect supply, those who’s jobs are to control silver price and, ultimately, what the market will say about the real price of silver.
China is covertly buying silver dore at above spot. What are they expecting as frantic hoarding of the color continues off the books. The bullion banks are already being drained despite efforts to slow that action.
This short article is a good place to start.
One thing is certain. When a vital national resource is scarce the government resorts to its worst instincts as it steps in to fix the problem.
What sort of fixes will we see when formal government policies remain focused on the EV market, renewable energy, green initiatives and the powerful shift away from fossil fuels? If demand rises as much as expected with this new battery, something has to give.
Let’s look at just one segment of battery demand.
Samsung’s battery uses 1000 grams of silver as opposed to 5 grams for the convention Tesla type. 1000 grams is 2.2 lbs of silver. A pound of silver is 14.58 ounces. 2.2 lbs is 32 ounces. We’ll use ounces for easier comparison to global supply and demand.
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