Renowned silver market analyst Peter Krauth, author of “The Great Silver Bull,” is forecasting an imminent silver shortage driven by escalating demand across various industries. According to Krauth, the demand for silver has surpassed the available supply, leaving only a 12 to 24-month buffer before inventories are depleted.
Silver Prices Set to Soar as Above-Ground Inventories Decline, Analyst Warns
Silver is once again in the spotlight with predictions of a substantial price surge within the next few years. Peter Krauth, a prominent figure in the silver market and the author of “The Great Silver Bull,” believes that silver is primed to become one of the most significant trades in the commodities market in the coming future.
In a recent interview, Krauth elaborated on the rising demand coupled with stagnant supply, which has kept silver prices relatively stable. His investigations revealed that major silver consumers are tapping into secondary above-ground inventories associated with prominent silver futures markets (such as Comex, LBMA, and Shanghai) and exchange-traded funds (ETFs), leading to a 40% drop in inventories over the past three years.
Krauth anticipates that if this trend persists, above-ground inventories from these sources will diminish within 12 to 24 months, paving the way for a surge in silver prices due to supply shortages. He also noted that projections for new mines coming online may not be sufficient to counterbalance this potential shortage, further exacerbating the situation.
Moreover, Chinese consumers are proactively preparing for the impending supply crisis. Krauth reported that silver producers have observed Chinese consumers paying a premium of over $3 per ounce compared to international prices, as they stockpile more of the metal. This heightened demand from Asia could exacerbate the crisis in Western markets, as Asian buyers are willing to pay above-market rates for silver.
Several other analysts have also foreseen an uptick in commodity prices, particularly precious metals, in the near future. In May, Peter Schiff advised investors to capitalize on what could potentially be the most significant precious metals bull market in history.
