Gold-Silver-Percentage-Of-Global-Assets-2015What the hell happens when global investors try to invest 10% in gold or say just 1-2% in silver?
If investors decided to increase their gold and silver investments to equal the percentage in 1980, we would have the following:

Chinese hot money has taken Vancouver real-estate and now Bitcoin prices to stratospheric highs. 
If a crypto-currency without intrinsic value can muster such popularity, why not speculate on gold and silver?
Particularly silver, as it stands out as a “poor man’s gold”, ideal for action-seeking, trigger-happy Chinese investors.
Signs and investment patterns are indicating that Chinese investors have begun to do just that…

When we use the term ‘precious metals,’ most people immediately think of gold.  That makes sense, of course. Gold is the most famous and most widely held precious metal.  But there are three others, namely palladium, platinum, and silver.
Silver in particular may be worth a closer look; we wrote to you several months ago that silver was very cheap on a relative basis, especially compared to gold.  And so far this year silver has been a top-performing commodity.
So today I thought it appropriate to take some time and specifically explore silver:

rocketFirst Majestic Silver has been one of the world’s best-performing stocks in 2016, nearly quintupling at best in recent months.
This outstanding Canadian silver miner runs extensive operations in Mexico, and is one of this metal’s purest producers.
Despite its blistering run this year, First Majestic remains incredibly well-positioned to greatly leverage silver’s mean reversion higher. 
Investors should consider taking a look…

keith_weinerIf the silver speculators let go and the market price snaps to its fundamental, it will rapidly drop about $2.70.   If it overshoots by the same magnitude to the downside, we may get to enjoy $11 silver.  At least, it will be enjoyed by those who haven’t lost too many dollars betting on silver.
Perhaps that mobile phone manufacturer, driven by falling volumes and compressing profit margins, is pressured to approach silver mining companies (and all other suppliers) to see if they can cut their costs.  Perhaps they were not bidding up scarce silver at the source, but putting in a low-ball bid below market.  We don’t have that information, but one thing’s for sure:
Silver demand is weak while silver supply is robust.

Buy 1 oz Silver KookaburraEarlier this morning Keith Weiner made the claim that silver demand is weak, and supply is robust. 
This afternoon’s data point on 2016 Perth Mint Silver Kookaburra availability however (or lack thereof), seems to claim otherwise…

World-Physical-Gold-&-Central-Bank-DemandThe gold chart below should have Central Banks extremely worried.  Why? 
Because the change in physical gold and Central Bank demand since the first crash of the U.S. and global markets in 2008 is literally OFF THE CHARTS…

Play

SprottIn the wake of Japan announcing negative interest rates and chaos in the silver market with Thursday’s LBMA silver price fix smashed .84 below spot prices by the 6 fixing bullion banks, we welcomed The Admiral of the Silver Market, Eric Sprott himself to help us break down all the action.
In Sprott’s words, the sheer brazenness of the silver fix smashReeks of Desperation“.

The discussion offers a unique look into the mind of the Billionaire Asset Manager, as Sprott shares insight into the thought process on how he evaluates whether a market is experiencing a bottom, and the legendary investor also shares the greatest financial lesson he’s ever learned…