Robert Kientz: Symptoms of Silver Shortages Growing
Tom welcomes back Robert Kientz, the editor, and publisher of Gold Silver Pros.
Robert discusses how silver market buying has changed dramatically since the beginning of the pandemic. As economies have started to pick up and inflation has been flowing into the broader commodity complex. SLV has admitted that rampant physical demand nearly caused them to run out of silver. Retail sales have been very high for the past few months, primarily due to the Silver Reddit movement. People are moving away from derivatives and into physical silver.
There are few good alternatives to silver in electronics, and there may come a day where we start to recycle landfills. Silver is also a byproduct at most mines, and therefore, the supply will remain relatively thin while demand increases. We no longer have the stockpiles we once had, and silver will remain a necessity for industry. He explains why industrial silver demand is inelastic.
If you look at the global short positions in commodities, you will see that gold and silver have the largest positions. If the monetary metals rise too high, the central banking system becomes at risk. From an industrial perspective, there are also reasons to keep silver at low prices.
Robert discusses the various cracks in the system and how they are pointing to stress. Lease rates, backwardation, premiums are all indicative of something happening behind the scene.
Robert as a former auditor, sees a lot of red flags in the gold and silver markets. Don’t assume anything when looking at details and question everything. Commodity markets have a sordid history going back over a hundred years.
He discusses Basel III along with central bank plans for digital currencies. The plans for a great reset of the monetary system include removing cash. Negative interest rates allow central banks to tax deposits, and they can drain liquidity as necessary, which amounts to a wealth tax on labor.
The repo market has not been fixed, and research published shows these markets have been involved in multiple crises, including 2008. Since debt grows faster than money, math dictates that it can’t be fixed. Something has to give soon.
Time Stamp References:
0:00 – Introduction
0:32 – Silver Buying Patterns
8:15 – SLV Prospectus Changes
9:56 – Futures & Delivery
13:20 – Inelastic Supply & Price
16:40 – Silver Short Positions
19:13 – Market Cracking
21:55 – Exploration & New Mines
23:00 – Questioning Audits
26:34 – Basel III & Gold
31:13 – The Great Reset
33:55 – Currency Standards
37:00 – Repo Market
39:22 – Fed & Liquidity
40:47 – Wrap Up
Talking Points From This Episode
- Structural changes in the silver markets.
- Retail sales and SLV Prospectus changes.
- Industrial silver demand and price inelasticity.
- Global reset banking changes, negative rates, and central bank digital currency.
Robert Kientz is the editor and publisher of Gold Silver Pros.com. Their premium (formerly paid) subscriber digest emphasizes long-term, cycle investing in the precious metals markets. He is also the author of the 2010 book Drop Shadow: The Truth About the Economy.
Roberts’s work has been featured on Yahoo Finance, Market Watch, NASDAQ.com, Seeking Alpha, Talk Markets, Stockhouse, Mining Feeds, APMEX, Gold$eek, Financial Sense, Technically Speaking, and Silver Doctors, among others.
Roberts’s formal education consists of a Master’s degree in Information Security and a B.Sc in Business Administration. He started in finance two decades ago, receiving college instruction in accounting, finance, marketing, and global business.
He has also completed government-issued financial license programs in the commodities, Forex, bonds, insurance, stocks, and precious metals markets.
Further, he has over 18 years of experience as a real estate investor, having founded and run two Texas companies that purchase, rent, manage, and sell investment real estate.
Robert started Gold Silver Pros in 2018 after writing on various other financial blogs for almost ten years. Their research is based upon over twenty years of investment experience in the bond, stock, real estate, commodities, Forex, and precious metals markets. One of the key concepts he learned from a generation of investing is recognizing bull market cycles and focusing one’s energy on specific investments designed to take advantage of these infrequent opportunities.
Asset cycles can last for decades. The current gold asset cycle is the largest Robert has ever charted. His service will show you how to capitalize on what he believes to be our lifetimes’ most significant generational wealth pattern.