The price of gold is probably the MOST manipulated commodity price in the world. The current surge in gold price has nothing to do with 'inflation', 'lack of supply', 'being a good investment against TEOTAWKINI' - The price rise is driven SOLELY by Central Banks of numerous countries buying vast quantities of the stuff - using some of the above listed 'excuses' for doing so - when in fact it is simply monopolistic price manipulation driven by BIG money sources.
In fact the SUPPLY of gold has skyrocketed in the past two decades due to extreme increases in minimg outpu, particularly in Russia and China, as the charts posted by DE of 'global supply' clearly show.
Compared to SILVER (or platinum, or ...) gold has far fewer critical commercial uses. Silver is a better conductor of 'electrons' than ANY other metalm even gold, has far higher tensile strength than gold, forms far more useable compounds than gold, and, as micro showed, has several medical uses also (anti-bacterial being one of them).
My neighbour, who used to produce both gold and silver coinage, also has the same opinion of silver over gold.
Here is a pretty decent article, reprinted by Oilprice.com, about the intrinsic value of silver.
http://oilprice.com/Metals/Silver/Why-Silver-is-the-Unsung-Hero-of-the-Modern-World.html
Why Silver is the Unsung Hero of the Modern World
http://oilprice.com/Metals/Silver/Why-Silver-is-the-Unsung-Hero-of-the-Modern-World.html
By ZeroHedge - Sep 09, 2024, 4:00 PM CDT
Silver demand is surging, driven by its essential role in new technologies like solar power and AI.
The silver market is facing a significant supply deficit, with existing mines struggling to keep up with demand.
New mines are crucial to bridge the supply gap and ensure the continued growth of tech industries reliant on silver.
Silver
Silver demand continues to surge, driven by technologies like solar power and AI.
In 2023 alone, the silver market experienced a 15% supply deficit. Furthermore, the market is expected to reach a cumulative deficit of 1,093.4 million ounces from 2020 to 2024.
In this graphic by Outcrop Silver, Visual Capitalist's Bruno Venditti discusses how new mines are necessary to meet the high demand for the metal.
Silver is Essential for New Technologies
According to Sprott, Silver is second only to oil as one of the most widely used commodities, with more than 10,000 applications worldwide.
The metal is a key component in photovoltaic cells used in solar power. The average solar panel requires 20 grams of silver.
Electric vehicles also use between 25 and 50 grams of silver.
In addition, the metal is essential for semiconductors, controls, sensors, and LIDAR technology in AI-enabled transport. Silver is also critical in healthcare AI, through conductive silver nanoparticles in wearable electronic skin patches.
The average cell phone contains 0.34 grams of silver.
The Risk of a Supply Gap
Despite silver’s importance, declining ore grades and depleting reserves at existing mines are reducing the metal output.
The industry also suffers from a lack of investment in primary silver mines. Today, over 70% of silver is mined as a byproduct of gold, copper, and other metals.
Production is also concentrated in three countries—Mexico, Peru, and China—which together account for half of global silver production.
The Future of Silver
If current circumstances continue, new mines will be necessary to meet the growing demand.
Outcrop Silver is quickly advancing the Santa Ana high-grade silver deposit in the Mariquita District, known as the highest-grade primary silver district in Colombia, with historic silver grades among the highest in Latin America.
The Indicated Grade for the Santa Ana project is ranked the second highest in the world.
By Zerohedge.com
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