The ongoing plight of the long term value investor continues – seemingly without end. However, decades of exuberance and greed have colluded. The financial establishment has created an accident waiting to happen. The mainstream has not “priced in” risk, which makes it even harder to travel the road less traveled.
And once the accident happens, it may be too late.
If silver prices were to suddenly move back toward natural price equilibrium, there would naturally (not always the best thing) be a rush to get on board.
If and when prices return to reality, production would severely lag.
First of all, there are very few primary silver mines left.
Secondly, by-product mining of silver is still the norm. This will not change overnight.
If commodity analysts were unable to see the value with prices being depressed for as long as they have, they certainly will not be inclined to chase another “bubble”.
Of course, these same analysts are completely deaf and dumb to the monetary side to silver – or gold for that matter.
If the move back toward natural price equilibrium comes with a financial crisis, it will be even more difficult to resurrect a sector that has been crushed by artificially managed prices held at or below production on and off for decades.
Sadly, once the masses figure it out, it’ll be too late.
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