Written Commentary
The Coming AI Related Silver – Supercycle
Silver has certainly stood the test of time and has outlasted many great empires. The first significant mines were discovered 5000 years ago in Anatolia, which is now modern day Turkey. These early mines were likely found by prehistoric people using deer antlers and stone hammers to dig horizontal and vertical shafts in known copper mines at the time. Moreover, their smelting process was revolutionary, they used a process called cupellation to purify silver. This method involved heating the silver ore in a clay furnace with a ventilated shaft blasting air within the furnace. The lead in the ore would oxidize and separate from the silver, forming a slag that could be removed, leaving behind relatively pure silver. Very ingenious and revolutionized global trade during that period of human history.
Now let’s fast forward to 2024, for the last 2 years silver has had supply deficits totaling 442 million ounces, the easy silver has been discovered and mined, going forward the ore quality has decreased, meaning miners have to process more material to get the same amount of silver. In addition, production costs have increased dramatically since 2020 , therefore, estimations to 2030 have a silver supply deficit of nearly 2 billion ounces…information provided by The Silver Institute. The most explosive driver of demand is every electronic device on the planet uses silver, skyrocketing demand from solar industry and Samsungs New AG-c battery (a game changer) that powers EV SUVs for 600 miles with a 10 minute charge. Production of these revolutionary batteries by Samsung is anticipated to begin in 2027.
Benefits of holding Silver futures contracts:
#1 You can adjust your leverage ratio from zero to 93% depending on your personal risk tolerance levels.
#2 Liquidity: you can buy and sell 23 hours a day 6 days a week and money can be wired out the next business day
#3 Flexibility: you can adjust your leverage ratio based on my personal technical bull-bear signals. These are mathematically based levels eliminating the emotion decision of when to buy and sell.
Please take a moment and look at the 20 year chart of silver with my personal analysis:
All charts provided by QST/APEX
Questions or comments about this article, contact Blake directly at +1 888 797 7969
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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
