Peter Krauth, Author of The Great Silver Bull Identifies The Catalyst He Thinks Could Trigger A Silver Bull Market

Published on: Mar 21, 2024
Author: Caroline Kong

Peter Krauth, editor of Silver Stock Investor and author of The Great Silver Bull, explained why the price of silver continues to move sideways near $24 at the PDAC 2024 conference in Toronto, Canada recently, and shared what he thinks could trigger a silver bull market.

He noted that since the beginning of 2020, pricing in the “paper” silver market (i.e., the futures and derivatives market) has been confined to a relatively narrow range.

And despite the fact that the silver market is in a supply shortage, the price of the precious metal has been moving sideways, causing many investors to lose patience with silver.

Unlike gold, the price of silver is driven in large part by industrial demand, including the manufacture of solar panels and electronics, among other things. Krauth points out that because the price of silver has been at the bottom of the range, there’s no incentive for silver producers to significantly increase supply.

And, when there is excess supply in certain years, that supply is diverted to inventories on futures exchanges, exchange-traded funds (ETFs), etc., from which silver is apparently being drained.

According to Krauth, there are many industrial consumers who buy long futures contracts and/or buy silver ETFs, and then when the futures contracts expire, they need to be delivered. And in the last three or four years, registered silver (metal available for delivery) has declined by about 70%. So, unsurprisingly, it won’t be long before all that silver is gone.

Krauth speculates that in another 18 months, two years at the most, there will be no secondary silver stocks. As for delivery of silver futures contracts, only cash will be accepted at that point, as there will be no more physical silver to deliver. By then, the entire silver industry will finally “wake up” and realize just how ridiculously low the price of silver is now.

In the silver bull’s opinion, the factors that prevented silver from rising in 2023 will become supportive in the second half of 2024. Investors will see silver prices approach $28 in the first half of this year and could see silver reach $30 by the second half of next year.

The falling dollar will have a major impact on the price of silver, also will have a major impact on the gold-silver ratio as well, which is usually a major factor to trigger the start of a silver bull market, he added.

If you’re interested in investing in silver, you might want to keep an eye on this company: Silver Storm Mining Ltd. (TSXV:SVRS). Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Golden Tag recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.

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