Page 32 - Bullion World Issue 3 July 2021

Bullion World | Issue 03 | July 2021

This recovery has very much been a
macro recovery by late 2023-24 we
have to remember that with the increase
of labor force in United States over the
next two years, The US is missing some
9 million jobs, 3,80,000 jobs needs to
created every month for next 24 months.
The US Federal reserve is targeting now
on employment and less on concern
about inflation. The interest rates which
are the drivers, investment demand will
be there. Silver gets added demand of
investment, some 60% and above is
industrial demand. But I don’t expect a
surge more than 27-30 US$ that we have
in our near term or mid-term. As you see
on the left hand side that a lot has been
deployed in inventories which cannot be
recycled or sold. But fundamentally in
crunch, we can see supply and some of
the evidence plot that we are not seeing
any significant premiums regionally or
any industrial grade of silver.

One very unique thing about silver, it is very different from other metals. But most of
the supply from the mining side is from lead, zinc, copper and gold. The silver supply
is not always price elastic, you can always have high prices but that doesn’t mean you
will get a robust supply demand because majority of it from byproduct of mining.

32