USA's Silver Stockpile is GONE - Expert Says "It's Better Than Gold" | Mike Maloney

Summary

In this compelling discussion, experts highlight silver's potential to outperform gold, emphasizing its undervaluation in the current market. With silver facing suppression and a growing short squeeze, the experts predict a significant price surge. Factors such as silver’s industrial demand, especially in solar panels, and the lack of a central lender to control price fluctuations set the stage for a massive breakout. As supply dwindles and short positions continue to grow, silver’s price could reach triple digits, offering investors a rare, once-in-a-lifetime opportunity to capitalize on its growth.

Takeaways

• 😀 Silver is currently undervalued compared to gold, and it is being viewed as a potential explosive investment due to a growing short squeeze in the market.
• 😀 Unlike gold, which is typically seen as a safe haven, silver has traditionally been more volatile, offering higher potential gains but requiring a strong risk tolerance.
• 😀 Silver is being viewed more as a safe haven now, not just as a leveraged play on gold. Its potential for explosive growth is increasingly recognized.
• 😀 The current stock market is in the biggest bubble in history, with overvalued stocks. In contrast, silver and gold are not in a bubble and may absorb capital from other asset classes when the market crashes.
• 😀 The silver market is much smaller than gold, and silver doesn’t have the same level of central bank stockpiles, meaning that price manipulation is more difficult.
• 😀 The price of silver is set to increase as a short squeeze continues. As the price rises, short sellers will be forced to buy back silver, causing further price increases.
• 😀 In 1981, the U.S. government urged the sale of its stockpiled silver, but this stockpile no longer exists, meaning silver is more vulnerable to market manipulation.
• 😀 Silver inventories are being drained from London and replenished in New York, with the trend indicating a potential supply shortage that could drive up prices.
• 😀 Silver inventories available for trading are rapidly depleting, with a third of free-floating silver disappearing in just two and a half months, setting the stage for an imminent price surge.
• 😀 The current gold-silver ratio is historically high, making silver a bargain compared to gold. Historically, silver has only been this undervalued 0.88% of the time over the last 340 years, representing a once-in-a-lifetime opportunity.

Q & A

Why is silver considered to have greater potential than gold?

Silver is often seen as having more potential than gold due to its volatility, which can lead to larger price swings. It's also being recognized not just as a leveraged play on gold, but also as a safe haven, especially in times of market uncertainty.

What does it mean for silver to be a 'poor man's gold'?

Silver is sometimes referred to as the 'poor man's gold' because it is more affordable than gold, but it still offers similar investment potential. However, silver tends to be more volatile than gold, requiring investors to have a higher risk tolerance.

What is the 'everything bubble' and how does it relate to silver?

The 'everything bubble' refers to the overvaluation of stocks and other assets. Unlike most assets, gold and silver are not part of this bubble and are expected to absorb capital when other asset classes inevitably collapse, making them a more stable investment.

How does the concept of a 'short squeeze' apply to silver?

A short squeeze occurs when traders who have bet against the price of silver (short sellers) are forced to buy back silver at higher prices to cover their losses, driving the price up further. This creates a potential explosive price movement in silver.

What impact did the Hunt Brothers have on the silver market in the past?

The Hunt Brothers attempted to corner the silver market in the 1970s, which led to price manipulation and market disruption. Their position in silver was used as a scapegoat to break the price of gold and ultimately resulted in significant rule changes on exchanges like COMEX.

What is meant by 'free floating silver inventories'?

Free floating silver inventories refer to the silver that is available for trading on the market, particularly the silver that is registered at exchanges like COMEX and ready for immediate sale. A depletion of this silver can lead to price increases as the supply becomes constrained.

What is the current trend in silver inventories from London to New York?

Silver inventories are moving from London to New York, indicating that silver is becoming more available in the U.S. This shift could be related to a response to price manipulation and is contributing to concerns over the availability of silver in the market.

Why is the gold-silver ratio important in understanding silver’s potential?

The gold-silver ratio compares the price of gold to silver, and a high ratio suggests that silver is undervalued relative to gold. Currently, this ratio is higher than historical averages, suggesting that silver could experience significant price growth as it corrects itself.

What role does silver play in the solar industry, and why is this important for its future price?

Silver is a crucial component in solar panels, and as demand for renewable energy grows, the industrial demand for silver is expected to increase. This added industrial demand, alongside its monetary use, could further drive silver’s price up.

Why are there so many conspiracy theories about silver markets?

Conspiracy theories about silver markets often arise due to price manipulation and the perception of market suppression. Charts and trading data often show discrepancies that suggest external forces are keeping silver prices artificially low, which fuels speculation and distrust.