 Good day fellow investors! Over the last few months I constantly got questions about silver. What's my view on silver? I didn't really have an opinion because I was mostly focused on gold and didn't research silver in debt. However, as I promised, I said I will look into silver and I must say what I found is very very very interesting. So let me start with an overview of the silver market now. The demand, the supply, the price, the influence on the price, exchange trade products, ownership and so on, industrial demand and then in another video we'll discuss the top silver miners to see whether there are investing opportunities. Let's immediately start with the silver price and then we'll see what's going on in the silver environment. It is interesting and perhaps even more than gold. So the silver price, the very very long chart here went from around four four five dollars per ounce in the 2000s 1990s. It spiked to almost 50 in the 2011 commodity craze only to fall down to the bottom at 14 and now it's not far from there it's still at 16. So if you compare it to gold it has crashed a bit more than gold from an average of 45-40 in the 2010-2013 period. It crashed to 16 which is about what 60 percent. Gold is down just 30 percent from its peak. So it might be oversold. Let's see. So this is the chart of the supply and demand surplus or deficits. In the 1990s the price was very low and there was an abundant surplus. In the last 18 years there are more deficits than surpluses which means that there is more demand for silver than what the mines can produce. The deficit was just 30 million ounces in 2016 and we'll see in the 2017 Silver Institute report where I get this data which will come out in May the data for 2017. So that will be interesting and I will certainly adjourn you on that. Where does the demand from silver come? It comes mostly from industrial applications which makes silver a little bit different from gold because gold has no really an industrial application. Silver is used in the industry. The application there has been declining but things might be changing from photovalic demand in the solar electricity generation field which is something very very interesting. There is always jewelry, silverware so that is also something to keep an eye on and of course coins and bars because a lot of people like to have physical silver in their ownership as hedge as a protection. What is important to note is that demand for coins and bars dropped the most in 2009 during the crisis which means that people rushed for liquidity. However the highest point was in 2015 where there was plenty of liquidity but silver prices were cheap. So that is something to look for however it will be volatile. That demand will be volatile. It's interesting that coin and bar demand is the highest and the biggest share of it is from North America and India. Another interesting player in the silver market are exchange traded products and their inventory built. However as silver prices declined in the last five years there wasn't much interest for exchange trade products and their inventory built wasn't really huge. It was more coins, metals, physical bars to private investors. When things turn, when there is speculation and exchange trade products ETFs see higher demand then this will also spike the price of silver. So another potential upside for silver. The biggest ETP holdings are eye shares of course then there are some ETF securities ZKB Julius Bear and others. Now if you want to invest in silver this is the key chart you have to look at is the cost of mining silver and we can see that the cost of 16 is somewhere around 89 percentile something like that. This is a little bit an older chart which means that there is potential for lower prices so there is a risk. There is always a risk but there is not much risk because at the 50 percent production which is 56 percent production which is the demand from the industry we can see that it is around 12 dollars per share. So I would put the bottom the 14 dollars we have seen in 2015 I would put the bottom there so there isn't much space for silver to go down which makes it a low risk investment unlike gold where there is more space for it to go down so silver is really really interesting. As I said when we compare silver to gold the gold to silver ratio is at the highest historical levels. You have to put 75 ounces of silver or something like that to get an ounce of gold. Whenever it was the case silver outperformed gold however we must really not get into this chart as the main reason to invest in silver because this can be as it is for a long long time. So my view from what I have researched is that there is a bottom price of silver because the industrial demand will stay there and silver is actually used for something which is something I must say I like. Further when something is not liked by ETFs exchange trade products by coin buyers there is no speculation it's really a boring industry and people don't really look at something like that which means in the words of Benjamin Graham you have to invest there where Wall Street isn't looking now at some point in time they will look at it again. So which makes silver again very very interesting. The gold market is around 117 billion of what they produce at current prices the silver market is around 16 17 billion per year so the silver market is much much smaller than gold so we can expect much higher volatility in it as it has been the case in the past. So we have limited downside because there is demand there will be constant demand from the industry perhaps even growing demand as more and more electricity will be generated by a solar way so silver is really really interesting and we have seen the cost curve so we know what's the bottom price there the upside everything can happen if silver will be considered a hedge against loose monetary policies like gold then this metal could really explode. So I'm thinking really again I'll see how it fits my gold miner portfolio but perhaps I might diversify a little bit with some silver miners if I find something interesting. I'm looking forward to your mining ideas I'll make then a quick video a list of 10 15 silver miners so that we can see what best fits your portfolio the rules are always the same mining costs life of mine is what you have to look leverage jurisdiction development phase so a lot of factors that enter into a mining investment and then you will see also how that fits your portfolio as for silver physical silver it is also an interesting hedge of course in a hedge in the hedged part of your portfolio as diversification to whatever can happen in the future so I don't personally like the physical investment even if it should be something smart to do especially with those ETFs products that make it easier so you don't have to have it physically here so it might be something smart and then rebalance around a price or rebalance around the weight in your portfolio which is also something interesting so silver looks now very very interesting thank you for your comments and we'll be digging deeper into the subject so please subscribe thank you for watching and I'll see you in the next video