Silver Fundamentals Explained 1 - Office Series 7

[onlyafool1611]

All of these series are simply fantastic so easy to understand and so well put you have done a truly remarkable job.

[capgains]

silver was $28 when this was made. now $41

[001MeTaBoLiC100]

A cell phone uses around .28 grams please correct me if I'm wrong thanks

[001MeTaBoLiC100]

I agree an electronic of that magnitude should rise in value quite significantly, however I believe this video is addressing the issue of smaller electronics such as cell phones which only use grams of Silver not ounces. I saw in a different video that China will be a major factor in the rise of Ag due to the demand for consumer electronics and the lifestyle the population will want to be accustomed to.

[DiggingNorway]

@TOCEO any 101 microeconomics textbook at undergraduate level will explain this... visit a library :)

[tradergee1]

How does Gold compare to Silver as far as elastic supply and demand?

[BrotherJohnF]

@tradergee1 Well, gold's primary function is as money, so a very high price could make the central banks look for an alternative. As far as supply goes, there are many gold mines that are able to ramp up production to meet the higher price, but the vast amount of gold held would be little impacted. So gold would be fairly inelastic, but nothing like silver

[tradergee1]

@BrotherJohnF Thanks!

[bohmaniac]

While supply and industrial demand is inelastic, the factor to observe is investment demand. This is essentially what determines the price. Supply and industrial demand doesn't have to change as price moves, merely investment demand.

[acuriousbeast]

A person who works as a financial adviser recently said to me that he felt the rise in the price of silver was due to 'silver bugs' stocking up on silver thus creating a self-fulfilling prophecy and this would probably cause a price collapse before stabilizing again. I haven't accepted that however it could be a possibility.

How much of a factor is that in the current overall rise in the price of silver ?

Is silver used in any commercially significant alloys outside of electronics ?

[apelove4u]

@acuriousbeast 99% of Financal advisors have no clue. They have ZERO education in metals history, fundamentals, or currency cause and effect. The FA to stock up on the US dollar....

[acuriousbeast]

@apelove4u I stopped mentioning silver to him along time ago and was surprised 'silver' came up including 'silver gurus'.

There was a full page ad today that let locals know that the Ohio Gold and Silver Refinery was setting up a 'satellite' refinery here for 5 days. 'It's a good time to sell', 'a shot in the arm of the local economy', 'turn unwanted precious metals into cash' and 'we also buy guns and antiques' were phrases used. It was written like news articles by the paper. Same fonts, etc.

[tgpdlp1]

I enjoy the office series, keep up the good work and keep stacking

[BrotherJohnF]

@tgpdlp1 TY

[acuriousbeast]

I never heard this before. It's something to think about.

Do you make these yourself?

[BrotherJohnF]

@acuriousbeast yes and yes

[acuriousbeast]

@acuriousbeast Managing to put all this information together and then putting in a format that is so understandable is really impressive. You're doing a lot of people a big service. I plan on showing these next time I have a group over. You do a lot better at explaining things than I ever could, as you know. Thank you.

[MoMark2011]

Silver is a healer too. Get some Get some! Thanks for the info packed lesson!

Oh ,and I love raw milk! :)

[BrotherJohnF]

@MoMark2011 yup, thx

[momentous11]

He should ask her out its part 7..... she keeps coming back for more.. lol

[10iggi01]

interesting, I did not know silver was a byproduct of the mining of other base metals. Do you have a rough estimate of what that "much much much higher" price will be (the point where it is mined more)

[acuriousbeast]

@10iggi01  Silver is usually a byproduct of copper and zinc mining, there may be others but I'm not sure on that one.

[DiggingNorway]

This was strange. If the demand curve is horizontal, meaning no price elasticity, that means that even with big shifts in the supply curve prices would change relatively little compared to supply. However, what we see is great volatility in the market, suggesting otherwise. This analysis fails to differentitate between industrial and investment demand. While there may be little elasticity in industrial demand, the curves for investements might have very different characteristics.

[DiggingNorway]

@DiggingNorway So the aggregated demand curve consists of ca 50% investmend demand, and 50% industrial demand (Silver inst. World Silver survey 2010). The price increase of silver is explained by increase in investment demand, industrial demand fell 08-09. The elasticity of investement demand may have very different charactheristics that the industrial demand curve. As substitution and marginal willingness to pay are different. Thus industrial elasticity is not = investement elasticity.

[BrotherJohnF]

@DiggingNorway Investment demand is still a small percentage of the 850 million ounces used every year

[DiggingNorway]

@BrotherJohnF and your sources is....? dont want be a pain in the ass, but.... according to my sources (silver survey 2010) quote: " Last year...53% intra-gain year...investors flocking...indeed without this support, it is likely that the silver price would have taken a rather fifferent course, given the severe slump in ind. demand" (p.6)

(ofcourse 08 was abd year for ind. D, but.. we cannot use the same priceleasticity for ind. D, for agg D. That is my simple point.

[steddy91]

In theory, what he is saying is 100% correct. Lets hopes it works out that way.

[JDLindskog]

Excellent explanation, thank you for making this.

[kellerj0]

there's milk in the water cooler!

[kingcherub]

@kellerj0 nice catch...:)

[CelticReject]

@kellerj0 There's also a cat in the microwave. You be able to see it if it was open.

[apelove4u]

@kellerj0 That is not milk. It is colloidal silver.