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The Knowledge You Need to Build and Preserve Your Wealth |
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Above Ground Silver -vs- Market Supply: Understanding the Real Price Drive
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David Morgan reviews research from the Silver Institute examining the relationship between above-ground silver stocks and the price of silver. At first glance, the study’s conclusion appears counterintuitive because it states that there is no clear correlation between the total amount of silver above ground and the metal’s market price. This seems to challenge the traditional idea that supply and demand
drive prices. Morgan explains that the confusion comes from misunderstanding what “above-ground stocks” actually represent. While humanity may have produced tens of billions of ounces of silver throughout history, a large portion of that metal no longer participates in the market. Much of it has been consumed in industrial products, dispersed in electronics, jewelry, religious artifacts, or household goods, or lost in landfills and other locations where recovery is uneconomic. As a result,
although the silver technically still exists, it is effectively unavailable for trading.
Because of this distinction, comparing the total historical stock of silver to the market price does not produce a meaningful relationship. The price of silver is determined not by the theoretical amount of metal that exists somewhere in the world, but by the much smaller quantity that is actually available to buy and sell. Morgan emphasizes that the real drivers of price are the tradable sources of
supply, which come primarily from newly mined silver, recycled scrap, and bullion inventories held by investors or exchanges such as COMEX, the LBMA, the Shanghai Gold Exchange, and silver ETFs. Against that supply stands demand from industrial users, investors, and fabrication sectors like jewelry and silverware.
When investment demand rises or industrial consumption grows faster than available supply, inventories tighten and prices move higher. Conversely, when demand weakens or scrap
supply increases, prices can fall. Morgan uses the analogy of housing markets to explain the concept: the price of homes in a city is determined by the number of houses actually for sale compared with the number of buyers, not by the total number of houses that exist in the country. Silver functions the same way. The existence of large quantities of silver embedded in products does not influence the market price because that metal is not available for immediate trade.
Morgan concludes
that the Silver Institute’s findings actually reinforce traditional supply and demand economics rather than contradict them. What matters is the “float,” the relatively small portion of silver that can realistically enter the market. Unlike gold, where nearly all metal ever mined still exists in recoverable form and can return to the market when prices rise, silver has been heavily consumed by industry. This consumption disperses the metal throughout the economy, making it difficult to recover
and leaving the active silver market much smaller than the total historical production suggests. As a result, when demand increases in such a small tradable market, prices can move quickly. Silver is not scarce because it was never mined, Morgan explains, but because so much of it has been used. The practical availability of silver, not the theoretical total supply, is what ultimately drives price movements.
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The Great Asset Rotation: A New Reality for Investors |
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Are You Positioned for the New Reality?
We are no longer in a normal bull market; we have entered an "acceleration mode" where prices are seeking a new reality to compensate for decades of artificial restraint. See the graphic above in full size.
Gold hits above $4,500 and has held that level for months. Silver has pushed above $75 in the same pattern. Anyone who has followed my work knew this move was
coming. Central banks shifted out of dollars. They bought gold by the ton. Silver demand surged across industry, technology, and investment. Many banks are buying Silver right now! Inflation stayed high. Confidence in US fiscal policy weakened. The direction was clear.
Higher precious metals prices.
That is exactly what unfolded. Gold climbed to record highs. Silver broke resistance levels it held for years and broke new highs.
But the real opportunity was never the metals alone. It has always been the companies that dig them out of the ground. Their costs stayed stable while margins widened. Their earnings moved higher quarter after quarter. The strongest gold and silver miners, with no debt and steady cash flow, have already returned 4x, 5x, even
10x.
Yet many still trade as if the cycle never changed.
That gap will not stay open. The market still acts as if gold will fall back to $1,800 and silver to the teens, even while these companies post record results. Earnings rise each quarter at gold above $4,200 and silver above $50.
You are looking at a market that has not recognized the new reality.
Silver producers show the same setup as gold miners. Strong margins. Strong cash flow. Cheap share prices. They fall on small pullbacks even though the
businesses stay healthy. That disconnect is rare and powerful. |
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This is exactly where The Morgan Report focuses its attention.
We identify the strongest companies early. We look for clean balance sheets, smart leadership, proven assets, and profits at the bottom of the cycle. You get the information before the crowd arrives.
Here is an example. Three of our top producers
we highlighted are up over 1,000 percent. many doubled fast, doubled again, then kept climbing.
Even after that move, they are still a buy. These are the setups that can change your financial future.
There are more. The next wave is already forming and has not caught up with physical gold and silver prices.
Inside The Morgan Report you will see:
You get clear guidance on gold, silver, and mining stocks so you can make informed moves instead of guessing.
You get
monthly research that highlights real opportunities before the crowd catches on.
You get direct access to analysis that helps you protect your savings and grow your portfolio in volatile markets.
Undervalued gold and silver miners generating strong cash flow while trading far below their real worth.
Every month you receive two things from me:
A clear look at what is happening in money, commodities, and global markets right now.
Deep research on the gold,
silver, and other asset companies with the strongest upside.
I only feature companies with integrity, strong leadership, and proven profitability. These firms can handle the lows and reward shareholders in the highs.
Most investors never see research like this.
Now is the time to act. Both gold and silver have entered a new phase. The next wave of investors will chase the miners after they move. That is when gains shrink and late buyers scramble.
You want your
position set before that rush.
Join The Morgan Report. If it is not right for you within 30 days, you get a full refund.
The window is open, but it will not stay open. Once this phase picks up speed, you will not have time to react.
Join The Morgan Report today.
Get Your Financial Affairs In Order Before The Collapse. Discover The Morgan Report Here.
Sincerely,
David Morgan
Founder, TheMorganReport.com
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Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to
completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader.
The Morgan Report is not and does not profess to be a professional investment advisor, and
strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. The Morgan Report and/or independent consultants or members of their families may have a position in the securities mentioned. Mr. Morgan does consult on a paid basis both with private investors and various companies. Investing and speculation are inherently risky and should not be undertaken without professional advice. By your act of reading
this independent market research letter, you fully and explicitly agree that The Morgan Report will not be held liable or responsible for any decisions you make regarding any information discussed herein.
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(c) 2025 The Morgan Report | David
Morgan |
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