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

Summary

Russia has announced plans to acquire silver for its state fund, signaling a potential shift in how the world views silver, moving from an industrial metal back to a monetary asset. This could impact the silver market significantly, as silver’s supply is shrinking due to high industrial demand. The speaker suggests that if other nations follow Russia’s lead, silver prices could surge. This development, combined with the growing importance of silver in high-tech industries, presents an opportunity for investors to secure silver before potential price increases. Silver stackers should consider acting quickly to benefit from these changing market dynamics.

Takeaways

• 😀 Russia's state fund has begun acquiring silver, marking a significant shift in the global silver market.
• 😀 This is the first time Russia is purchasing silver for its state fund, diversifying its reserves beyond gold.
• 😀 Russia's move is part of a larger trend where countries are increasingly turning to precious metals as reserves to avoid counterparty risk and economic sanctions.
• 😀 Historically, silver was viewed as money, with a silver-to-gold ratio of 15:1 or 16:1, but it shifted to being seen as an industrial metal.
• 😀 Above-ground silver supplies are now lower than gold, partly due to industrial consumption, especially in electronics and solar panels.
• 😀 While silver's price is currently undervalued at around $31 per ounce, it could see significant increases if it is re-monetized as a reserve asset.
• 😀 The announcement by Russia comes just a month before the BRICS Summit, which may discuss new financial institutions or currencies backed by gold.
• 😀 If silver is re-monetized, it could become a critical asset of the 21st century, akin to oil in the 20th century and coal in the 19th century.
• 😀 Silver is essential for high-tech industries, especially in 5G, AI, and electric vehicle technologies, leading to rising industrial demand.
• 😀 There is a possibility that silver's price could surge to triple digits if central banks and state funds around the world begin acquiring it as a reserve asset.
• 😀 The speaker urges silver stackers to act quickly and acquire silver, as the market dynamics may change rapidly with increasing demand and limited supply.

Q & A

Why is Russia beginning to buy silver for its state fund?

Russia is diversifying its state fund by purchasing silver, alongside other precious metals like platinum and palladium, to hedge against the risk of having its assets frozen and to secure alternative monetary assets. This marks a significant shift in how silver is perceived.

How does the new move by Russia reflect a change in the perception of silver?

Historically, silver was considered a monetary metal, but over time it was overshadowed by gold. Russia’s move to buy silver suggests that silver may be viewed again as a valuable monetary asset, rather than just an industrial one.

What role does silver play in modern industries?

Silver is an essential component in many high-tech industries, including electronics, solar panels, and medical devices. As demand for these technologies grows, silver’s industrial importance is increasing.

What historical event led to silver being demonetized as a monetary asset?

Silver was demonetized due to a decision made by Isaac Newton, who, while running the Bank of England, set an artificial peg that caused silver to flow out of England. This led to the transition from a bimetallic standard to a gold standard.

What is the significance of the 1873 Coinage Act in relation to silver?

The 1873 Coinage Act redefined the U.S. dollar as being based solely on gold, removing silver from official coinage and contributing to the demonetization of silver. This act is known as 'The Crime of 1873.'

How does silver’s supply and demand compare to gold in today’s market?

While more silver is extracted from the earth each year than gold, silver is heavily consumed in industrial applications, often in forms that are unrecoverable, such as in electronics and solar panels. Gold, on the other hand, remains largely above ground in recoverable forms.

What is the potential impact of Russia’s silver purchases on the global silver market?

Russia's purchases, although small in relation to the overall silver market, signal a larger shift in how silver might be viewed globally. If other nations or central banks follow Russia’s lead, the demand for silver could rise, possibly driving up its price.

What is meant by the term 'remonetization' of silver?

Remonetization refers to the re-establishment of silver as a recognized monetary asset. This shift could lead to central banks and state funds accumulating silver once again as part of their reserves.

What does the future look like for silver if it becomes a strategic asset in the 21st century?

If silver is re-monetized, its importance could grow significantly due to its industrial uses in technologies like electric vehicles, solar energy, and AI. This could lead to silver becoming one of the most crucial resources of the century, similar to how coal and oil were critical in past centuries.

Why is it important for silver stackers to act quickly in light of recent developments?

As silver may be gaining recognition as a valuable monetary asset again, demand could increase rapidly. This could drive prices up, making it important for silver stackers to acquire silver while it remains undervalued.