from Silver Doctors:
SD Friday Wrap: Silver’s outlook just turned wildly bullish, and for a reason that most people missed…
Editor’s Note: The charts in this article were set-up around 11:30 a.m. EST on Friday and do not include price action after that time unless specified.
This has certainly been one wild week even if it’s not reflected in metals’ price action.
Check out silver wanting to finish out the week right smack dab in the middle of last Friday’s range:
Apart from being slightly up on the week, is it just me, or are we consolidating over time here?
Things, which in this case means silver, consolidate over time, price, or both, and since silver’s “price” consolidation is all over the board since early September, I think the “time” is ripe for the next rally.
The craziness of the week started off in the oil markets when trading opened on Sunday.
There sure has been some tense geo-political uncertainties lately, including the prospect of war with Iran.
The insanity wasn’t confined to politics, however.
On Monday, it was also becoming clear that the Fed “needed” to provide some emergency liquidity into the financial system by means of their intervention in the repo market, and that is exactly what the Fed has been doing, daily.
Oh yeah, and there was also that Fed rate cut thingy too.
Fundamentally speaking, this week has been super bullish for gold & silver, in part for the reasons I just mentioned, and I’ve been looking for the metals to rally, but they have not, and since the metals did not rally, the next rally is really going to be eye-popping!
Speaking of the fundamentals, we got some wildly bullish fundamental news for silver this week on top of all the other silver bullish news, and with so much focus on the Saudi attack, the JP Morgan gold & silver manipulation case, and the Fed, the fundamental news I’m about to share totally flew under most investors’ radar.
But it is no secret!
What was that wildly bullish fundamental news?
See for yourself, from Freighwaves:
One hundred thousand electric vehicles?
This global push to produce EVs, which apparently has now come crashing down on the United States like a tidal wave, is going to require a crap-ton of silver.
Simon Popple and I discussed the industrial use of silver just yesterday, and at the time of our recording, the Amazon news hadn’t even been reported:
OK, “Hey Half Dollar, this is a nothing-burger, and you’re making a big deal out of it!”.
Is it a nothing-burger?
Or could it be that physical silver demand at the margin is about to blow-up the cartel?
We know that the cartel will lose complete control, and while they may not have lost complete control just yet, they are certainly in the process of losing it.
And this isn’t something many years out, because in reading the article from Freightwaves, we learn these EVs will be operating on US roads ibeginning in 2021.
Take that into consideration, and then, for what it’s worth, consider what the LBMA’s Alchemist newsletter said about the use of silver in EVs in July, 2018 (bold added for emphasis):
The emphasis on these two dates is because they are among the keystones of government targets in a number of nations for the elimination of ICE. They do look somewhat optimistic, although the ground-breaking work at Volvo, targeting 2019 as the year in which all the vehicles rolling off its production line will be partially or completely battery powered, is a sign of things to come. Potentially more significant are VW’s far-reaching plans which will involve much greater volumes, although over a longer time horizon for implementation.
Why did I highlight this little snippet from the LBMA?
Because a 100,000 van order is no small potatoes, and the company, Rivian, which makes the delivery vans Amazon is buying, wasn’t even on the LBMA’s radar!
There is a point here: If physical silver supplies tighten, and if we continue to see implied increases in physical demand at the margins, then we could really see natural market forces imposing their will on the cartel much sooner than people are thinking.