There Is No Silver Shortage – Confirms The Perth Mint

There Is No Silver Shortage – Confirms The Perth Mint

Welcome to Illuminati Silver, we tell you
the truth about silver. Today is Monday 31st August 2015 and we are
going to address the issue of a silver shortage. This video is slightly longer than usual and
a little more technical, so please bear with us. We were watching the regular ‘pumpers’
videos over the weekend and again discovered the usual suspects like Andy Hoffman and others,
telling us that dozens of mines are about to close down and that a silver shortage will
soon be upon us, if it’s not here already. In fact, some of our subscribers are also
putting forward the argument that a silver shortage exists. Many cite the US Mint running
out of Silver Eagles and the premiums currently charged on those Eagles, which has also to
some degree extended to Maple Leafs and Philharmonics. We checked this out, and it’s true there
are premium increases on these coins, all of which will be explained shortly. On the
Silver Doctors video which was shown a few days ago, it was mentioned that Dealers were
running out of silver and especially 100 oz. bars. In fact, they suggested (though did
not use these words directly) that you had better hurry before even what’s left runs
out. Well we took a look at the APMEX inventory, and indeed found a number of products out
of stock. However, we also found that they had available approximately $2.5 million worth
of silver bars and multiple million dollars’ worth of silver coins – in fact, we gave
up counting after page 5. Interestingly we posted these figures in the comments section
of their video, only to have it removed – we wonder why? Now, we have never believed there to be a
silver shortage nor one occurring any time soon. The original proponent of this rumour
is a Mr Ted Butler who in 2005 published an article entitled ‘The Friedman’s Theory’
stating that silver would run out in the next 29 years. In this article he claimed that
he had divided current annual world production into known world reserves. He also divided
annual production into the larger resource base which is the amount of silver thought
to still exist in the earth. He then used the USGS data divided it by the Reserve Base
which was some 570,000 tons (18 billion ounces) and said that this silver would be removed
from the earth within 29 years depleting all of its stock. Adrian Douglas of another well known
‘pumper’ of the precious metals exaggerated this further by stating in 2009 “the US
Geological Survey estimates that silver will become extinct by 2020 – just 11 years from
now all silver in the earth’s crust will have been mined and consumed.” However, the big mistake that Ted Butler made,
and we do not know whether it was deliberate or not, was that he quoted the Reserve base
of 570,000 tons and interpreted this as being the entire Silver Resource Base or in other
words the amount of silver available in the ground. He only had to look at previous reports
to see that this could not be the case, as the reserve base had been increasing each
year or remained stable– so in other words he was saying, that despite the usage of silver
increasing, the amount available in the ground was also increasing or remaining the same.
In fact from 2004 – 2009 the Reserve Base stayed the same at 570,000 tons then slightly
fell, then rose again and in 2014 stood at 530,000 tons. So let’s assume the Reserve
base does represent all of the silver in the earth’s crust (which it does not) then in
the past 10 years, the supply has only diminished by 40,000 tons. On that basis alone, and quoting
Ted Butler’s own miscalculations, Silver will take some 130 years before it runs out. However his figures grossly underestimate
the amount of silver in the ground. For clarification, the Mining Reserve Base contains proven reserves
of silver, proven by testing, which represents silver which can be produced under the cost
it can be sold for. It also includes marginally economic reserves and a small degree of sub-economic
reserves – which are reserves that can be proven to exist but cost too much to mine
at the time. It does not include undiscovered silver and silver from mine expansions. Now mine expansions are the key. Proven silver
reserves via testing are an expensive business to carry out and only a certain depth is analysed
in a mine at any one time. Then as that mine is dug, further testing
then occurs at that lower level, and more often than not additional silver deposits
are then discovered. For example, The “Lucky Friday Mine” from Helca Mining in 2004,
they discovered 28 million ounces more than they originally discovered and knew that as
they dug lower,, even more would be discovered. So they prove up their reserves as they mine
them, and interestingly the Lucky Friday mine has only ever quoted 3-4 years’ worth of
reserves during its 60 year old history. Yes 3-4 years reserves and the mine lasts in excess
of 60 years. So the Reserve base levels grossly undermine the true level of silver in the
ground. Some scientists forecast, based on the USGS figures that there could very well
be some 1.4 trillion metric tons of silver in the earth’s crust. Now not all of that
is economic to mine, but when you hear that silver is running out it’s a shame faced
lie to frighten you into buying silver. So what about these coins you mentioned earlier
we hear you ask? Well let us quote you the Perth Mint’s Blog dated 18th August 2015
– Yes Australia’s Premier Mint : “Internet chatter about a looming shortage
of silver should be treated with a healthy dose of skepticism. As we’ve seen recently,
this conversation tends to surface whenever one or more of the world’s major mints announce
they’ve sold out of silver bullion coins because of a spike in demand. The hype causes
some buyers to panic and pay too much. There have been a number of temporary coin
shortages since the global financial crisis. But the scarcity of coins available for sale
on each occasion did not equate to a shortage of metal in world wholesale markets. Now let
me repeat that, this is from the Perth Mint But the scarcity of coins available for sale
on each occasion did not equate to a shortage of metal in world wholesale markets
What they actually reflected were constraints in the production capacity of bullion mints
around the world. The ability to produce new coins quickly is necessarily held in check
by the slowest process in the manufacturing chain – which in coining includes: mining,
refining, blanking, minting and distribution. Bron Suchecki explains: “It’s like a baker
with only one oven. It doesn’t matter how much flour or how many mixing machines he
has, he’s only going to be able to produce so many loaves of bread per day” One of the major bottlenecks in precious metal
coins is the manufacture of blanks, also known as planchets. It’s a surprisingly complex
procedure demanding amongst others things; rolling, annealing and surface treatments,
not to mention a lot of weighing and measuring because of the value of the metal involved. So there you have it no shortage of silver
just a shortage of coins held at bullion dealers and blanks at the various mints. Oh by the way, do you remember when we mentioned
at the beginning of this video that Silver Doctors specifically quoted a shortage of
100 oz. bars and used this as a sign of a true silver squeeze. Well this is what the
Perth Mint says on the subject of a silver squeeze: and we quote
“a Real gold bank run will manifest itself in the wholesale markets for 400 oz. gold
bars or 1000 oz. silver bars, so to identify a real physical-paper disconnect occurring
you need to look at the premium above spot for 400 oz. or 1000 oz. bars. We shall therefore let you draw your own conclusions. We hope you have found this video useful.
If so, please give it a thumb up, comment and if you haven’t already done so, please
subscribe. Also it would be helpful 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.


  1. In a "free market", you never really have a "shortage" of anything. A market clearing price will match supply to demand.

    Then there's GOLD … you can find huge amounts of it in the oceans, and even in bags of sand you can buy at places like Home Depot. It's just not economical to retrieve it AT CURRENT PRICES. You don't have to totally exhaust all supplies for prices to increase dramatically.

  2. There may be 1.3 trillion ounces in the world crust, but if it cost $1000 per ounce to mine most of it, your argument is specious. And I am sure not possible to mine a huge percent at $1000. We are peak silver and mining cost go up from here. All the easily mined silver is declining.

  3. why is old out dated video still here? supply and demand is not the reason prices more the bullion….what about diamonds…….it IS a controlled market….

  4. Repeating the quote by the master himself, Illuminati Silver by someone calling him/them for their hidden agenda! "+I disagree67 absolutely, the few thousand people who listen to us on You Tube will now not buy any silver at all, and such will be the impact that the price will collapse and we can have it all to ourselves. You have discovered our cunning plan; and should we reach 5,000 subscribers, silver will fall to just $1 an oz – CAELUM!!!"

  5. This liar is a joke! He does not mention the depleting concentration. Giving joke assumptions of how much there might be is a fantasy. So why did the governments stop using silver and gold as money? Because it is running out? This guy is a paid liar. Let's tar and feather the paid idiot liar. I hope this liar does not buy and save silver and gold. So why was a silver dollar of .77 ounces of silver worth one dollar then and now worth over 12 dollars now?

  6. Everytime someone tells me there is no silver shortage I usually go out and buy some more. It reminds me of the silver shortage. lol.

    We have been in supply defecit for years and depleting stockpiles in the process. It's kind of common sense when you look at silver being used in industry.

  7. Look at silver as a hedge, when inflation rises or jumps and the dollar loses value silver will go up in price, this hedge kicks in and it should balance the scales of the inflation, other people will feel it that have no silver but the ones that prepared for this event stands somewhat better chance of surviving the monetary event crash

  8. I buy silver all I can, I also believe there's no serious shortage right now BUT industry will consume large amounts with solar power products upcoming possible boom and other reasons I wont mention and I want 2B in place to jump on the bandwagon if it takes off, if it doesn't I'll pass it down to my son when I'm gone

Leave a Reply

Your email address will not be published.