Our friend and colleague Sean Rakhimov, editor of SilverStrategies.com, is an astute observer of the silver scene, as well as a charter graduate of the Hidden Pivot Course. In the essay below, Sean explores some of the reasons why silver will be increasingly in demand in the years to come, especially by sovereign and institutional buyers.
He writes as follows:
Over the last several months, we have been pondering if governments will come into the silver market. Before we get into that, it is important to note that governments are very different animals and that there are over two hundred of them out there. Therefore, it is a very liberal generalization to lump them all together as if their needs, objectives and agendas were the same. Expecting them all to act in the same fashion for the same reasons is a big stretch. That said, it’s the stigma, the psychological effect, the sentiment and the message it would send to markets that prompts us to group them together in investors’ minds as a market force.
This same topic has been argued in the gold space for several years and now it has come to pass that central banks worldwide have thrown in the towel and became net buyers of gold. Should it be different for silver? By the way, did you notice, how silver silently became mainstream again, and [continue reading…]