By SD Contributor SRSrocco:
There are two misconceptions about the silver market that are still held by many investors in the precious metals community. One is the notion that the world produces large annual silver surpluses and the other is the low cost of mining silver. Some have argued that the investors have been deceived by certain aspects of the silver industry to believe these two fabrications.
If the silver institute determined the annual silver surplus-deficit the same way as the World Gold Council calculates gold, there would be no so-called huge silver surpluses. However, the silver industry and investors have been indoctrinated to believe that silver is just a mere slave to fulfill the demands of its industrial masters. Institutions, individual investors or the public who have the “need” or “use” to acquire silver as investment — need not apply.
Before we get into destroying the myth (once and for all) behind the so-called silver surpluses, here is the definition of surplus: