by Mike Maharrey, Silver Seek:
Gold set multiple records last year while silver remained well below its all-time highs. This created the impression that silver underperformed even though it was up over 20 percent. But we’re starting to see some bullish sentiment for silver, even in the mainstream.
In fact, some people are projecting 2025 could be silver’s year to shine.
In this episode of the Money Metals’ Midweek Memo, host Mike Maharrey explains why the supply and demand dynamics, along with technical indicators, justify this bullish sentiment.
TRUTH LIVES on at https://sgtreport.tv/
Mike opens the show talking about an old photo he recently ran across.
“I was wearing a T-shirt that said, ‘The Future’s so bright I gotta wear shades.’ I also had hair in that photo, which was fun. Anyway, as I was thinking about doing a show focusing on silver, it occurred to me that the t-shirt slogan might be applicable. There are a lot of people who see a really bright future for silver. And right now, in particular, there’s even some mainstream bullishness.”
Mike notes that one of the primary reasons for this bullishness is rapidly increasing industrial demand. This is being driven by a big uptake in silver consumption in the renewable energy sector – specifically solar.
“I’ve been bullish silver for a while because it seems way underpriced given the supply and demand dynamics, and as I said, the mainstream seems to be moving in that direction.”
Mike acknowledges that renewable energy can be a controversial topic given how it has been politicized. But he argues that in and of itself, clean energy isn’t a bad thing, even if you don’t believe it is going to “save the planet.”
“Here’s the thing…no matter what you might think about it; green energy is here to stay. Like it or not, green energy is going to be pushed and subsidized. And that’s good for silver.”
Mike explains why silver is so important in the solar sector, and he also notes that the advent of AI will likely create similar demand dynamics.
Projections are that industrial silver demand topped 700 million ounces last year for the first time. The problem is supply isn’t keeping up. We’ve seen several years of structural market deficits, meaning more silver is being consumed than produced.
“That means silver users are having to tap into above-ground stocks. This is basically silver sitting in vaults – primarily on the investment side of the coin. In order to free up these stocks, the price of silver has to rise.”
Meanwhile, mine production peaked in 2016. Mike explains the dynamics in the silver mining sector and why supply is having a hard time keeping up with demand.
