The Future of Silver Determined by Prudence
Annual silver production is approximately 800 million ounces—the Industrial Commission's demand is 100 million or 1.3 billion ounces.
The decline of the US dollar is the biggest factor driving all gold and silver movements. Furthermore, Western politicians, simply seeking election victory, will take on debt even if it means the country's collapse. This means they will do anything, even if it makes no sense economically, in order to boost stock prices this fall.
Even if they take on debt, they will use gold and dollars to boost stock prices. There is no economic principle at all. It's exactly the same as a nation's tactics and reasons for going to war.
Since inflation is also a factor, a rise in gold and silver is inevitable, although it is a secondary effect of the US dollar. This will devastate domestic companies, and is closely related to resource-rich countries. The gap between these companies and those that have already taken wise measures will become clear.
Entrepreneurial profits are meaningless if inflation is 7%. The key point here is that the ability to predict future developments in resources and mineral resources cannot be measured solely by current production and success.
In Europe, the US, and other countries, a dollar decline immediately reflects this. Japan, meanwhile, has twice the debt of these countries, so a one-tenth dollar decline would be considered a 1/20th to 1/30th of that.
In that sense, since paper bills are all stable under the control of the dollar, they should be held in physical gold. Furthermore, prices of basic necessities such as food, electricity, oil, and gas will naturally rise, and countries in areas with scarce supplies are at risk.
This, too, depends on the foresight of politicians. No matter how you look at it, the Japanese sword in Europe and the US is nothing short of dumb. The only ones who don't see any change are the UK, which became like that, and the US, which successfully expanded its industry, began to cede ground under the gold standard. While the intentions of both the UK and the US are on the same level, the current relationship is between a group seeking to back the gold standard and a group of paper dollar fraudsters, so it's starting from a time when it's impossible to create a framework that can serve as a reference for the UK and the US.
Some say that the UK and the US are looking at a 20-30 year horizon, and that it will take time even after the collapse of the US dollar's dominance. I remember being personally surprised when I heard J. Richard say it, even though I was listening carefully.
The main reason for the rise in gold and silver is not the rise in silver itself, but the fact that even if all the silver is used as a raw material, there is still not enough silver for companies to use. Annual silver production is approximately 800 million ounces; the industry demands 100 million or 1.3 billion ounces. 65-70% of silver is a secondary product. Lead, zinc, copper, and gold mining are only available in small quantities, and there are no foolish corporations that would increase production just for silver.
Recycling is possible, but its use in China's solar panels is massive. To be commercialized, it must be usable for 25-30 years.
It will take 25-30 years for the current level of silver consumption to be recycled. While it is large in form, like weapons, it is completely evaporated into the air in an explosion. Since it is not portable, recycling itself would not be feasible because the cost of repairs would not be worth it.
For these reasons, when silver hits around $500, the world will likely make a fuss and seriously seek a second silver alternative, but in fact, efforts are currently underway, with repeated failures. This is one way of looking at silver today.