Silver Takes Flight

After passing the $21 level of the "Fibonacci sequence", the next target is $34. July 18, 2019, in the article "Where is going the silver's price?" I had announced that silver would reach this level around November 2020. It is possible today to think that silver could reach it more quickly, for all the reasons explained below :

In recent months, to avoid the risk of the epidemic spreading, silver mines have been closed for two months in Mexico, the world's largest producer. Copper mines have also been closed across Latin America, and strikes have prolonged this situation. This severely destabilized all silver mining production in the second quarter of 2020 and hence the supply of markets.

The closure of borders in the United States, as in England, blocked imports and exports of precious metals in March and April. This blew up the usual "three-cards trick" between COMEX, LBMA, and ETFs.

On Thursday, July 16th, 2020, the Sprott Physical Silver Trust registered with the US Securities and Exchange Commission (SEC) its intention to invest the sum of $1,500,000,000, i.e. 1.5 billion dollars in physical silver over the next 24 months.

At $21 an ounce, this would represent 71.4 million ounces or 8.8% of the world's silver mining production.

James Turk, a leading silver market specialist, on the announcement of the purchase of Sprott Physical Silver Trust, immediately shifted his short-term target from $22 per ounce to $30.

Craig Hemke interviewed Andrew Maguire, who said :

“We are facing supply restrictions and extremely long wait times for wholesale silver. We have refining delays that are several months. In fact, we have been told, they are so busy producing gold bullion at this point that they are pushing all silver processing even further."

My own sources in the precious metals sector in Switzerland are more precise.

Swiss refiners will only be able to deliver 5 and 15-kilo silver bars in December 2020. Markets will have to wait 5 months! As for the 1-kilo silver bars, there will be no delivery before January 2021, in 6 months.

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