Russia’s Plan for SILVER (A Final Warning for Serious Stackers)

Summary

Russia's recent decision to buy silver as part of its state fund marks a significant shift in the global silver market. Traditionally seen as an industrial metal, silver is now being recognized as a potential monetary asset once again. This change could drive silver's value higher, especially as demand for its use in high-tech industries grows. The shift could lead to silver becoming a key strategic asset in the 21st century, much like gold in recent years. As countries increasingly see silver as a reserve asset, prices could rise sharply, making it a crucial time for silver stackers to act.

Takeaways

• 😀 Russia has announced that its state fund will begin acquiring silver, marking a significant shift in how silver is perceived globally.
• 😀 This move comes after years of BRICS nations accumulating gold, and it signals Russia's diversification into precious metals like platinum, palladium, and silver.
• 😀 Silver, historically used as money, has recently been viewed primarily as an industrial metal, with its price undervalued compared to gold.
• 😀 For most of history, silver was valued at a much higher ratio relative to gold, but in recent decades, it has become an industrial commodity.
• 😀 Russia’s acquisition of silver might be due to gold becoming too expensive, and the increasing recognition of silver as a monetary asset once again.
• 😀 The shift in silver’s status as a monetary asset could coincide with the BRICS summit in Russia, where new financial institutions and a gold-pegged currency are rumored to be discussed.
• 😀 The demonetization of silver in the 19th century, particularly following the Coinage Act of 1873, made silver less important as a reserve asset.
• 😀 Silver’s increasing role in high-tech industries, such as 5G, electric vehicles, and renewable energy, is driving its industrial demand.
• 😀 If silver is remonetized, it could become a critical asset for the 21st century, much like oil in the 20th century and coal in the 19th century.
• 😀 Silver’s limited supply, combined with increasing industrial demand and potential central bank acquisitions, could drive the price of silver to record highs in the near future.

Q & A

What significant shift in the silver market does the script highlight?

The script highlights that Russia has announced it will begin acquiring silver as part of its state fund, marking a major shift in how silver is perceived, from primarily an industrial metal to a potential monetary asset once again.

Why has Russia started acquiring silver now?

Russia's decision to acquire silver is likely driven by multiple factors, including the rising cost of gold, a desire to diversify assets, and the recognition of silver's historical role as a monetary metal.

How has silver's role in the global market changed over time?

Historically, silver was a core monetary metal, valued relative to gold in a 15:1 or 16:1 ratio. In recent times, however, silver has become mostly an industrial metal, with substantial quantities being consumed in electronics, solar panels, and other high-tech applications.

What was the 'crime of 1873' and how did it affect silver?

The 'crime of 1873' refers to the Coinage Act of 1873, which effectively demonetized silver in the United States by removing silver from the definition of the dollar and pegging it solely to gold. This led to silver's decline as a monetary standard.

Why is Russia's purchase of silver seen as significant for the global silver market?

Russia's purchase is significant because it signals a potential shift back to viewing silver as a reserve asset, similar to gold. This could increase demand and elevate silver's value, especially if other nations follow suit.

What are the current challenges with silver supply and demand?

The silver market is facing deficits, with industrial demand outpacing production. Moreover, much of the silver is used in applications like electronics and solar panels, where it is unrecoverable, further tightening supply.

How does the global consumption of silver in industry impact its price?

As silver is used extensively in industries like electronics, renewable energy, and high-tech applications, a large portion of it is consumed and not recycled, limiting its availability. This, in turn, creates upward pressure on its price due to the shrinking supply.

What role do BRICS nations play in the shift towards silver as a monetary asset?

BRICS nations, particularly Russia, have been accumulating precious metals like gold for years. Russia's move to acquire silver could be part of a broader effort by BRICS to diversify and strengthen their financial systems, potentially leading to a new international monetary framework.

What impact could the remonetization of silver have on its price?

If silver is remonetized and central banks or state funds start acquiring it as a reserve asset, it could lead to a dramatic increase in silver's value, potentially pushing its price to triple-digit levels and beyond, due to its limited supply.

What does the speaker recommend for silver stackers in response to these developments?

The speaker advises silver stackers to act quickly and acquire silver soon, as the price may rise significantly if more nations follow Russia's lead in viewing silver as a reserve asset.