ORTHODOX SILVER ANALYSIS IS USELESS IN DETERMINING FUTURE SILVER INVESTMENT DEMAND

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!

 

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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.

This is my biggest BEEF with the folks in which I have a lot of respect in the precious metal community… as well as the NITWITS in which I hold very little.  As I stated before, I was writing about DECLINING ORE GRADES 4-5 years ago when most were talking about how great the gold and silver stocks were going to perform.

Well, we found out in the past several years just how bad the mining stocks have performed and how fast the ORE GRADES HAVE FALLEN.  I also believe today, that the same ANALYSTS are missing the important fundamental when making their forecasts…. and that is ENERGY.

For example… this was Endeavour Silver’s newest Press Release;

Endeavour Silver Delivers 8th Consecutive Year of Production Growth in 2012; Silver Production Up 20% to 4,485,426 oz, Gold Output up 77% to 38,687 oz

This was great news from Endeavour as they are increasing reserves as well as production.  However, this is what they failed to mention to the investing public:

ENDEAVOUR SILVER PRODUCTION DATA

2007 silver production = 2,135,484 oz

2007 tonnes milled = 291,561

2007 average silver yield = 7.3 oz per tonne

2012 silver production = 4,485,426 oz

2012 tonnes milled = 1,065,689

2012 average silver yield = 4.2 oz per tonne

Q4 2012 silver production = 1,235,026 oz

Q4 2012 tonnes milled = 362,799

Q4 average silver yield = 3.4 oz per tonne

———————

So, Endeavour has doubled its annual silver production since 2007, but has done so as its average silver yield has declined in HALF.  Thus, Endeavour is consuming more energy to produce the same oz of silver than it did 5 years ago.

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.

 

SD Bullion

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