Hi guys and girls!
Once upon a time I stumbled upon a gem-packed interview from the 90's with the ex-leader of communist Bulgaria, Todor Jivkov. Sadly it's in Bulgarian (my native language), but I may add subtitles to this video later on. He talks about a lot of interesting stuff - the economy of the Eastern-European countries, the bank(st)ers and more. But what really caught my attention was something he said at the 39th minute of the interview:
"There wasn't a bank in the world to which, if we turned to it, wouldn't lend us money. They were begging us to take credits. Because they knew we have a gold reserve, which is untouched. The only think we didn't have in reserve was silver, as the electronic industry demanded a lot"
He was the leader of Bulgaria till 1989. This was the era before electronics, such as cell phones, computers, solar panels etc. went mainstream. Imagine how much more the world has changed since then! How much more the consumption of silver has increased, and how much more the silver deposits have been depleted! It's no coincidence countries do not have any silver reserves. They would, if they could! It's just that there's not enough of it, and it's not likely to be enough of it in the future. It's that simple. There was not enough of it for reserves even in the 80's. And all the silver that was used in the electronic industry is as good as gone forever.
As I am writing this, the price of the cherries here in Bulgaria has gone nuts. This is due to the unusual late April's frost which diminished the harvest for a second year in a row. Due to this, the price for one kilogram of cherries went up to 60 leva (or $33).
Today the price of one ounce of silver stands at $16 and a change. We really live in very, very interesting times! :)
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Interesting argument. We'll see if you are right! Though a quick check of recent (10 yr) market history shows it hasn't surpassed $50. Electronics aren't going away any time soon though...
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Thanks for your upvote and comment! The thing is, in my humble opinion, since silver is such a tiny market, banks can manipulate the price. Deutsche bank was caught doing it not long ago. But sooner or later push will come to shove and we'll see a jump like in Bitcoin.
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I think there's still more downside to come but it's not wise to hold nothing. Feel free to check my analysis of gold and silver out!
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