True and higher prices all of a sudden make it economical to mine low grade ore or process ore from other metals. It also becomes profitable to recycle silver from items where is was not before. Fresh new supply hits the market, prices go down. Only the reddit kiddies on think the laws of supply and demand have been repealed and silver can go to $1000/oz.
And the SLV prospective states that if they can't get silver for the custodial account, they just stop trying to match on hand physical and the NAV to current silver prices. That's a FATAL FLAW in the reddit game plan.
Be careful going long D’Anconia Copper though.
Where I think silver can jump is the absolute refusal of Chomo Joe Biden’s refusal to allow any new mining on US soil. China will be mining their own all ove the world and everyone else will be selling to China.
Yeah, you’re blowing smoke now.
The spike will be by (if they know enough of what they’re doing and aren’t distracted by catcalls to stay with GME, spread into other shorts, or enter into contracts on paper) insisting on physical delivery in the near term.
The increase in production is not always certain nor rapid, as it takes time to ramp up new (by definition, of marginal profitability) sources; and then of course there’s the problem of, once the price goes down, they’re operating at a loss again.
The problem is that the spike in demand is not a secular trend, the way demand for fossil fuels are. Tesla and industrial uses of silver notwithstanding.