In a recent two-part interview on the Commodity Culture podcast, Andy Schectman, President and CEO of Miles Franklin Precious Metals, provided an in-depth analysis of the current state of the gold and silver markets.
Schectman delved into the dynamics of institutional investment, market manipulation, and the strategic moves by countries like China and India. His insights offer a comprehensive understanding of why these precious metals are crucial for investors, despite their often slow and counterintuitive market movements.
For those who prefer to read rather than watch, here are the key takeaways from Schectman's enlightening discussion:
Part 1: Gold and Silver Markets Overview
- Speed and Perception: Gold and silver markets move slowly, which can lead to underestimation by the average investor. However, their importance becomes evident over time.
- Gold’s Performance: Gold is nearing all-time highs, currently at $2,470 per ounce, indicating a positive future for silver.
- Institutional Investment in Silver:
- Central Banks and Gold: Central banks are heavily accumulating gold, but not silver.
- Institutional Hesitance: Large institutions allocate less than half a percent to silver in their investment accounts.
- Market Manipulation: There are suspicions of price suppression by bullion banks.
- Chinese Investment:
- Zhongtai Futures: This Chinese company, linked to the PBOC, is heavily invested in gold and silver, challenging Western bullion banks.
- Physical Silver Drain: Significant withdrawals of silver from global exchanges.
- Institutional Moves: China and India are increasing their silver holdings.
- India’s Silver Imports:
- Significant Increase: Imports from the UAE jumped from $2.2 million in 2023 to $1.44 billion in 2024.
- Tariff Advantages: The UAE provides tariff benefits facilitating large imports.
- Market Dynamics:
- Suppression of Silver Prices: Western manipulation benefits countries like China.
- Future Projections: The true value of silver is much higher, with significant future potential.
Part 2: Military and Industrial Demand for Silver
- Military Demand:
- Historical Context: U.S. military's historical and current use of silver in weaponry.
- Suppression of Information: The military-industrial complex likely downplays silver demand.
- Industrial Demand:
- Solar Panels: Account for about 20% of silver demand, but military and high-tech uses are more critical.
- Green Economy: Silver demand remains strong regardless of the green economy's success.
- Retail Demand:
- Western Participation: Surprisingly low compared to India and China.
- Potential Rush: A banking crisis could trigger a rush into precious metals.
- Strategic Accumulation:
- China’s Moves: Buying silver mines and critical commodities worldwide.
- BRICS and Belt Road Initiative: These resource-rich countries are strategically accumulating silver.
- Price Suppression:
- Western Markets: Ongoing suppression by Western bullion banks.
- Eastern Exchanges: Future dominance by exchanges in Shanghai, Dubai, and Moscow.
- Final Thoughts:
- Undervalued Asset: Silver is considered the most undervalued asset with great potential.
- Investment Opportunity: Current market conditions present a unique investment opportunity in silver.
Contact and Sponsor Information
Commodity Culture - https://www.youtube.com/@CommodityCulture
- Miles Franklin Precious Metals:
- Contact: Email info@milesfranklin.com for questions and price lists.
- Website: https://milesfranklin.com
- Sponsor: Ark Silver Gold Osmium.
- Contact: Ian Everard at 372-649-441 or by email at Ian@arksgo.com.
- Website: arksgo.com.
Schectman's detailed analysis underscores the critical role of gold and silver in today's market, offering valuable insights for both seasoned and novice investors. For a deeper dive, tune into the full interview on Commodity Culture.