Gold and Silver Pull Back — Smart Money Buys When Others Wait 
The Supply Crisis Building in Plain Sight
For the past five to seven years, the silver market has been running on empty. Global consumption consistently exceeds production, creating a persistent deficit that’s draining above-ground supplies. Unlike paper assets created with keystrokes, silver is finite — and we’re using more than we’re mining.
In their latest Gold Silver Show, Mike Maloney and Alan Hibbard reveal just how severe this imbalance has become. This isn’t a temporary glitch; it’s a structural problem compounding year after year. When demand outstrips supply for this long, a reckoning is inevitable.
Industrial Demand: The Game Changer
The real story isn’t investment demand — it’s the explosion in industrial consumption. Solar panels need 20 grams of silver each. Electric vehicles require it for contacts and connections. Advanced electronics can’t function without it.
As Mike explains, this creates an “insatiable appetite” that’s fundamentally different from investment demand. When investors buy silver, it can return to market when prices rise. But industrial silver? Once it’s in a solar panel or EV, it’s gone forever. This one-way flow is draining available supplies at an unprecedented rate.
Why History Says Silver Could Explode
Mike and Alan’s research reveals a crucial pattern: silver tends to lag early in precious metals bull markets, building pressure like a coiled spring. When it finally moves, the gains can be explosive.
Right now, silver looks dirt cheap compared to stocks, real estate, and even gold. This relative undervaluation, combined with the supply crisis, creates what they call a “perfect storm” scenario. History shows these conditions don’t last — and when they resolve, the moves can be dramatic.
What Could Light the Fuse?
Several catalysts could trigger a silver price explosion. A financial crisis driving safe-haven demand. Industrial users panicking about securing supplies. Or simply investors waking up to the supply/demand reality.
As Mike notes, these imbalances can persist longer than seems rational — but not forever. When the market finally connects the dots, repricing could be swift and severe.
The Opportunity Now
For investors, this setup presents an asymmetric opportunity: limited downside, potentially extraordinary upside. The combination of supply deficits, surging industrial demand, and historical undervaluation creates a compelling case for silver’s role in any portfolio.
Whether as a hedge against currency debasement, a play on green energy, or simply an undervalued asset ready to run, silver deserves serious consideration. The question isn’t if the supply crisis will matter — it’s when the market will notice.
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