Loading ...US Retail Silver Dynamics
Something to contemplate as Silver continues to make ATH’s. We know that the bulk of demand, which is only getting stronger, comes from all types of industrial, commercial and military related purchasers. Another large percentage of continuous demand, comes from global retail savers especially from India, China and global South countries. So what are the likely dynamics in North America, especially the US? I don’t know what the percentages are in Canada, and being much smaller in population, it may not change things much. However in the US, it is widely believed that only about 1-2% of the population, have any physical precious metal exposure. Of course, you have the high profile billionaires and millionaires who are engaged, but what happens to availability and price, when the majority of the population is facing a collapsing US dollar, at least as far as it’s purchasing power, is concerned. Demand is going to soar and availability will become nearly non-existent. It could happen overnite, but is more likely going to be a parabola, that starts rising slowly at first and ramps up higher over the coming weeks and months. Try wrapping your head around that, when trying to figure out why Silver, isn’t responding to usual technical analysis rules and models of behavior.
Hey, new here, but I would guess the silver demand in the US will be equivalent to an observer sitting on the beach in Indonesia in 2004. At first, all is normal, most notice nothing. For many minutes you actually notice the absence of water (lack of retail silver demand), but eventually it overwhelms you (tidal surge), and you can’t believe how even after the initial surge how much water just keeps coming. That is how I imagine the interest in PM’s will happen from the retail space. Once it starts, it’ll be hard to stop.
Welcome AA, interesting and good analogy.
The “Know your client” form eliminates a lot of retail investment in PMs.
Just ask your friends on a regular basis to ask their “guy” again about PMs. You will get the same answer. It’s too risky or it will not suit your portfolio BS.
Many have been returning 10-20% pa as the general mkt rose. I’ve had many 70 something friends tell me that as long as their portfolio is growing faster than what they need to live on, they will stay the course. Fair enough as they have an outsized portfolio to start with.
Their choice.
One guy bought some of our favourite miners early in the Spring against the wishes of his “guy”. Well you can guess what the conversation was when his choices out performed his guy’s widows and orphans stocks, ETFs and Mutual Funds by a long shot.
It was probably a difficult conversation for the “guy”. The comparison may even cause a thinking person to study up and bail on the “guy”. Just my theory.