There is no Gold or Silver shortage admits David Morgan & Chris Marchese


Welcome to illuminati Silver, we tell you
the truth about silver. Today is Sunday 6th September 2015 and we
are going to show that even The Silver Guru himself and his trusty Lieutenant agree with
us there is no gold or silver shortage. On the 26th August 2015 Under the name of
David Morgan, Mr Chris Marchese – Senior Equity and Economic Analyst for The Morgan Report
and co-author of The Silver Manifesto, wrote his comments about The gold and Silver Shortage
on www.marketoracle.co.uk. We provide a link below this video.
This article could have been written verbatim by us, and we wish we had come across it a
little sooner than now – as we would have used it to support many of the comments we
have made previously. We shall read a few paragraphs for you, without
editing and do let us know if you are surprised by its content.
By Chris Marchese : “A pet peeve of mine is when an article is published talking about
a shortage in silver or gold. Recently, we have seen an increase in articles claiming
that there is a precious metals shortage simply because both the U.S. Mint and Royal Canadian
Mint ran out of blanks. Both Government Mints predetermine a rough amount they will mint
at the start of the year. When demand surges, a “bottleneck” can occur and this has
happened in the past. Why is this such a pet peeve? Because a shortage
in a specific silver product does NOT mean a shortage in the raw material. It would be
like saying there is a rice shortage if Rice Krispies stopped being produced momentarily.
Can there ever be a shortage of silver or gold? Theoretically, if you take the industrial
aspect of silver to the extreme and industrial consumption skyrocketed and consumed total
silver supply (primary supply + secondary supply+ above ground inventory) where primary
supply is worldwide mine production, secondary supply being recycled silver and above ground
inventory which is roughly 2Billion oz., then yes, total silver supply would be consumed.
However, in this thought experiment the probability is that those holding silver for investment
purposes, would be willing to sell silver at astronomical prices as the industrial demand
continued ever stronger. But isn’t that a shortage? Wouldn’t there be pressure on
an industrial user as to how much they would or could pay? In other words what influence
would the market put on these buyers and sellers? It must be pointed out that a vast amount
of industrial products are price inelastic to the price of silver because so little is
used per item. So even if silver were to go up ten or twenty-fold, the amount used is
so small in price relative to the overall sales price of the item, that these industries
would simply pay up to continue their manufacturing schedule. This is true in many electronic
and medical applications. High prices would drastically influence silverware
and jewelry, which would likely see large declines in sales and that of course spills
over into lower demand for silver as a raw material.
Further, let us admit here and now that perhaps some industrial users might stockpile silver
or “hoard” metal. This is stated from experience as Ford Motor “hoarded” palladium
for their assembly line as the price went parabolic.
Remember an increase in consumption of silver would lead to increased secondary supply.
Roughly 20%-25% of silver is recycled. If industrial consumption began to exceed primary
supply as a result of increased demand, it would necessarily increase the market price
of silver as well as increase secondary supply, since it becomes more economical to recycle
silver at $20/oz. than at $15. Taking this further, it is more favorable to recycle silver
at $30/oz. relative to $20/oz. and so on. Furthermore, due to the roughly two billion
troy ounces in above ground inventory, even if Industrial consumption increased substantially,
it could be offset partially or perhaps totally by secondary supply. Additionally, higher
silver prices would allow mines which were previously uneconomic to become economic,
and more silver mining could take place, adding to supply at the very least, under the current
energy dynamics. So even if taken to the extreme, the idea of silver being in a shortage is
a statement that one must consider carefully. In practical terms seeing industrial demand
skyrocket is nearly impossible at least in the current worldwide economic landscape because,
the Greater Depression which began in 2007 has not ended. Since 2007-2008, the debt/GDP
ratios in the major world economies has skyrocketed to dangerous levels such that providing an
environment for real economic growth to occur, would cause the interest payments on debt
to soar. In other words, because central banks do what the government tells them, allowing
the natural rate of interest to prevail is realistically impossible.
Simply stated, industrial consumption skyrocketing at this time isn’t realistic and realistically,
silver and gold are not in a shortage. The definition of shortage at least in this case
is the demand for gold/silver being greater than the supply. But both metals are available
at some price and given the fact the physical market has yet to overtake the paper market
at current metals prices, speaks volumes – at least for now.
So there we have it. One of the most trusted people within the ‘pumpers’ community;
agrees that there is no silver and gold shortage. So when you see vast premiums on Silver Dollars
and Canadian Maples – you know its only a temporary phenomenon.
We hope you have found this video useful and informative. If so, please give it a thumb
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if you could share this on twitter and follow us @illuminatisilv1. Disclaimer:
Silver Illuminati owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.

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