silver production

The GFMS is predicting that the official arrival of PEAK SILVER will occur in the next 2-3 years. 
Meanwhile, a draw-down of LBMA silver inventories may be the beginning sign of looming future physical delivery problems.

The EndThe biggest flaw in Trader Dan Norcini as well as many other analysts who believe that the markets ARE NOT RIGGED, is that they fail to understand the global energy situation.    The value of most STOCKS, BONDS and PAPER ASSETS are derived from a growing economy, which is based on a growing energy supply.
As the global oil supply peaks and declines, the value of most paper assets will decline.
The only way to protect wealth at this time will be in physical assets such as GOLD & SILVERIt was the SIPHONING of investor funds into paper assets such as derivatives, options, stocks  and bonds that caused the REAL MANIPULATION of the precious metals market.

Peak Oil will destroy gold and silver manipulation by DEFAULT.

gold cartel shakes the treeLet’s call the strategy of picking all the low-hanging fruit in an economy Plan A: you know, expanding credit, lowering interest rates, building infrastructure, fueling speculative frenzies, all the good stuff that fans the flames of “growth.”
Now that the central banks and political leadership of the U.S. and China have plucked all the low-hanging fruit, they have no Plan B.
With no plan to manage an economy in which expanding credit no longer generates growth, the two nations are rapidly reaching Peak Everything:

Silver vs Oil Price & Ratio 1981-2000You can buy more than three times the amount of silver compared to oil today than you could during the decade of the 1960′s.
The Central Banks and Monetary Authorities have done a fine job bamboozling the public in making sure that gold and silver remain as silly investments only the fringe in society would purchase and hold.
When the price of silver reached $35 an ounce in 2011 it wasn’t a parabolic move higher, rather it was behaving more like a balloon being released from far below the surface of the water.  The coming explosion in the value of silver will be a shock to the world.
If we were to value silver today compared to its oil ratio during the following periods, this would be the result:

Price of Oil vs Silver 1928-1937As the FED turns up the heat in the central bank frying pan, the frogs (public) don’t realize they are being cooked to death by inflation. Unfortunately, we are well past the point of no return.  It’s only a matter of time now before the whole “Financial Cliff” falls off the mountain side.
The days of the Fiat Dollar are numbered.  This is precisely why the present FED policy of printing money, buying bonds and other assorted pieces of paper garbage will not work for much longer.
The FED is not only pushing on a silly string, it’s also coming up against the GREAT ENERGY WALL.  Energy is the precious metal investors greatest secret weapon because the Fed’s fiat monetary powers become increasingly worthless in a peak energy environment.
Energy is the key to understanding the true fundamental values of gold and silver.  All I can say to the people of the world who are still holding onto upwards of a $100 Trillion in paper assets, time is running out to make the switch into physical assets such as gold and silver.

SRS3By SD Contributor SRSrocco:

The problem today with the typical analysis coming from the BULLS & BEARS concerning future silver investment demand and price is that it is based upon an ENERGY SYSTEM that is more than 1,000 years old.  You cannot understand silver if you DO NOT UNDERSTAND ENERGY.

Most of the investing public and the folks from FOFOA have no clue how energy will impact the future silver investment demand as well as its price.  They FAIL TO THINK OUTSIDE THE BOX.

SILVER INVESTMENT DEMAND WILL BE HOTTER THAN GOLD.

…mark my words!

roadBy SD Contributor SRSrocco:

While gold is known as the King of Monetary Metals, Silver will become the “OFFICIAL ROYAL UNDERDOG”.

Investment demand for silver hasn’t even begun yet.  This is what I will be discussing in my upcoming presentation.  Investors who are worried about silver selling off after the big move up with gold (AS JIM SINCLAIR HAS STATED)… shouldn’t be.  Sinclair is excellent in understanding gold, but is still forecasting the future price of silver based on 1970-1980 world economic conditions.

Energy will be a MAJOR FACTOR going forward that will impact SILVER INVESTMENT DEMAND.

By SRSrocco:

PEAK SILVER???

There is this notion that if a mine can produce more silver per ton, it will be able to generate more profits.  Unfortunately, for Alexco Resources this is not case.
Alexco Resources’ Bellekeno project is Canada’s only primary silver mine producing silver at over 800 g/t (24 oz/t), which is twice the ore grade of the top two silver mines in the world. 

However, Alexco recorded a NET INCOME LOSS of $2.6 million in the second quarter of 2012.