Yesterday's silver price was down today Silver price is up there have been some Fluctuations day to day and we will talk About this but more importantly I want To talk about something that silver Price recently did which it will never Do again so let's do it Thank you so much for watching my video I do sincerely appreciate it if you want To learn more about investing in Precious metals or if you just want to Watch awesome videos about gold and Silver make sure to subscribe to my YouTube channel okay so we are currently Seeing a pop in Precious Metals prices Today we got gold up almost 30 dollars Silver up over 50 cents if we look at The stock market we can see the stock Market is rallying today and the U.S Dollar Index is down so why is the Dollar down and everything else up that Is the question now when it comes to These daily moves in spot price I like To go over to Kitco and we're just going To read the first few paragraphs in this Article here because I think it paints a Good picture of what's going on so the Headline is gold price jumps to daily Highs as the U.S service sector Contracts in December I think this is Definitely having an effect on the Markets right so the first part here the Gold mark Market Advanced to new daily Highs as the service sector fell short
Of expectations in December Contracting After 30 months of growth according to The latest data from The Institute of Supply management the services Purchasing managers index PMI was at a Reading of 49.6 percent last month this is really Important down from November's 56.5 percent the 6.9 69 was up Okay I see what you did there percentage Point decline was a surprise to the Downside as Market consensus calls were Looking for the index to come in at 55 Percent so they were thinking it was Going to be around 55 it was way down uh To uh 49.6 Readings above 50 are seen as a sign of Economic growth the farther an indicator Is above or below 50 the greater or Smaller the rate of change so basically If it's above 50 we're growing if it's Below 50 we're not growing right so this Is kind of another sign that we're in a Recession and you know if we are in this Deep recession that we basically already Know we are in then the FED is not going To be able to continue to jack up rates So this is going to be bad news for the Dollar and good news for gold and silver This chart here is showing the silver Spot price over the last three days so On January a fourth we saw the price Come down yesterday the price came down Even more and then today we are seeing
Some nice gains but we haven't recouped All of the losses quite yet so we will See where it goes from here but you know These day-to-day moves in silver spot Price are not too exciting to me right I Mean if it jumps up like a dollar or Goes down a dollar in one day it's kind Of like all right that's a big move but You know 50 cents here and there is kind Of to be expected when we have all of These numbers coming out but overall I Would say I still am bullish on Silver But I want to talk about one thing that Silver Spa price has done fairly Recently but I think it will never ever Do again this is really interesting to Think about and if you're just now kind Of getting into silver if you've only Been buying for the last few months or a Few years maybe you don't realize this But there is a floor sort of a bottom That silver spot price could ever go and That floor is moving up and one of the Things I want to look at is actually how Much silver is being used every year in Contrast to how much silver is being Mined every year this chart here is Showing the supply and demand side for Silver year after year so from 2019 to 2022 this was the amount of silver that Was available and then for demand this Is how much silver was needed right so If we look at the market balance 2021 Negative 51 million ounces 2022 negative
71 million ounces and then down here in Red this is the deficit of silver mining Supply however silver Institute just Revised the shortage for 2022 it's not 71 million ounces it's now 194 million ounces this chart here is Essentially showing the decline in Available silver in these warehouses Right so we have the lbma and the comex The two biggest silver stockpiles pretty Much on Earth and over the last year or So we can see the lbm may this light Blue line the decline in available Silver as well as this dark blue line The comex silver stockpile is depleting As well so not only are we at a mining Deficit over the last few years but also The world is using more silver and this Is expected to increase in 2023. Okay now we are at the five-year silver Spot price chart and I want to talk About what silver price will never do Again so let's start with the bottom for Silver what's the lowest that silver Spot price could go before the miners Would refuse to sell silver into the Marketplace right because if silver Mining costs too much money they're Simply going to not mine any more silver Or they will stockpile their silver and Not sell it out into the marketplace Which would have to raise the price of Silver obviously because if there's Still demand and no Supply price will go
Up and then they would sell their silver Into the marketplace so for a long time It was right around 14 an ounce and we Can actually see in 2018 silver spot Price kind of Florida with this a few Times same with 2019 but in 2020 this is When the covid Panic started and we saw This dip well below the bottom right and What happened during this time well I Actually interviewed Keith newmeyer he Is the CEO of First Majestic silver and By the way this is no small silver Mining operation they have over a 2.3 Billion dollar market cap so this is a Pretty big silver Miner right but he Told me they were refusing to sell their Silver because the spot price was too Low now why did the spot price go down So much all of a sudden well there was a Liquidity crisis right and Traders Needed cash so what did they do they Sold their gold and silver stocks and You know what this happens when the Stock market goes down when it starts to Plummet a lot of the time we will see Gold and silver spot price go down Initially but then it will rally after That which obviously silver rallied hard After that point so this is kind of like A little blimp right but when silver Price went below the 14 Mark they Stopped selling their silver and that's Something important to note so what I Want to point out is that because we've
Had so much inflation over the last few Years the bottom for how low silver can Go is actually moved up it's no longer 14 an ounce instead it's actually closer To 16 an ounce is where the bottom for Silver is so what's interesting to note Is that silver still could go below 16 An ounce right as far as the spot price Is concerned because we could see Another event like this and by the way The sharper this decline the greater the Rally will be after so if we have Another event like that you know a Quote-unquote stock market crash or dip We could see silver price you know dip But then rally hard after that point but What I'm saying is that the natural Bottom or the lowest that silver price Could go is actually been raised so in The past silver could go down to around 14 now it can go down to around 16 an Ounce and if it goes below that point For any period of time the miners are Going to refuse to sell their silver out Into the marketplace and we'll see the Price go up so this is one good thing About owning physical silver and Physical gold is that there really is This bottom right for how low it can go For other stocks they can go to zero Right for cryptos they can go to zero There's a lot of things you can invest In that can go to zero but that is not Possible for silver I mean even if the
Spot price did go down to say ten Dollars an ounce the premiums on Physical silver would go so high I mean You'd have like a 200 percent premium You'd still be paying thirty dollars an Ounce for your physical silver right Even though the spot price went down to 10 so you know this whole spot price Thing is kind of smoking mirrors it's Not really reflective of physical silver But it is interesting to note the silver Price will never again do what it did Back in 2018 and 2019 when it went below The 16 Mark so we'll see what the future Holds Um obviously if they get inflation under Control this will kind of slow down the Rate of increase for the bottom that Silver spot price can be but I feel like They're not really going to be able to Get inflation under control because I Think they're going to be so worried About a recession they're going to Forget about inflation for a while so Anyway that was the video I'm curious What your thoughts are feel free to put Them down below in the comment section And I will see you all in my next one Silver dragons out
