2017

Silver Outlook
The real reasons to invest in silver are based on the underlying
market fundamentals and technical analysis. Here are the new 2017
statistics from GFMS, Thomas Reuters/Silver Institute one of the
leading research and consultancy company for the precious metal
markets.
Last year global production dropped for the first
time since 2002 when silver began its secular
bull market. Some of the main reasons were
driven by lower by-product out from lead/zinc
and gold sectors and total silver supply
decreased by 32.6 million ounces in 2016.
Silver mining production has fallen for the
first time in 14 years.
With production falling and 2015 marking the
peak with silver mining productivity hitting the
lowest level ever. According to GFMS silver
output from mining companies will trend lower
in the foreseeable future. Declining total supply
is anticipated to be a huge key driver to
continued annual deficits in the silver market
moving forward.
Silver Output From Mining Companies
Silver Market Posts 4th Straight Supply Deficit
From 2000-2008 silver faced an 8-year deficit
except a tiny surplus in 2005. During that
timeframe silver increased in value over 425%.
Here we are again, for the last 6 years silver has
faced extreme annual deficits except for a small
surplus in 2012.
When the market has an annual consecutive
deficit, year over year, like we are witnessing
for the last 4 plus years. Not only is it very price
supportive, but it starts to provide upward
pressure on the market. With GFMS foreseeing
continued deficits moving forward, the silver
market looks very bright and profitable.
World Scrap Supply Declined 46% Since 2011
Demand For Bars And Coins Up Four Fold US Mint Sales 22 Times More Silver Eagles
Since Pre-Financial Crisis Than Gold

According to the Silver Institute 2017 Interim
Report, total official silver coin sales reached
206.8 million ounces a slight decline due to the
elections and the uncertainty. This number is
likely to be much higher due to privately
minted coins not currently included.
But the fact of the matter is prior to the 2008
financial crisis, world silver demand for bars
and coins were in a range of about 50 million
ounces year over year from 2000-2008. Even
prior to the dot com bubble world demand
was even less for investment bars and coins.
Over the past 7 years investors have
purchased 1,505 Moz of silver vs 284 Moz of
gold. That equates to over 5 times more silver
being purchased from investors for bars and
coins. Due to massive amount of silver bar and
coin demand from investors since 2010, the
silver market has suffered a 337.3 Moz deficit.
The fundamentals in the silver market is
setting up for much higher prices and timing
couldnt get any better.
Investors Purchased 5 Times More Silver
Than Gold Since 2010

Top-right photo is great snap shot from the US

Mint when it was established in 1986 till now.
Silver Eagles are one of the most sought-after
government minted coins and you can clearly
see how demand has significantly increased
since the dot com bubble/911 attacks. 1986-
1998 silver eagle sales averaged about 5
million ounces, 1999-2007 silver eagle sales
averaged 10 million and 2008-2016 silver eagle
sales averaged 37 million ounces. Demand for
the coins has increased over 7-fold since pre-
dot com/911 crisis.
Investors Purchased 10 Times More Physical
Silver Than Paper Silver ETFs 2012-2016
Investors prefer physical over paper and they
have acquired 10 times more physical than the
paper market in the last 5 years. Since the
housing crash of 2008, investors have been
buying silver in a big way due to the economic,
financial, and political uncertaintys both
domestically as well as globally. With investors
veering away from paper and more into
physical over the last 5 years, speaks volumes.
Over A 400% Increase In Demand For Physical
Silver In The 21st Century From China Alone
Silver bullion demand is growing and
practically all major government mints have
seen record level sales, and many of them
already operating at peak production.
India and Chinas surging demand for bullion
couldnt be more evident. India has faced
several problems over the years with tax on
gold imports and they have been shifting
more to silver. Given the fact that Indian
wedding seasons jewelry industry is valued at
nearly $40 billion and experiences strong
demand from over 10 million Indian
weddings every year, we could see a massive
shift with explosive prices in the future. Not
to mention solar energy demand as well.
Chinas solar energy will be responsible for
the greatest growth in demand. China is
aiming to triple its solar photovoltaic (PV)
generation capacity by the year 2020. As a
matter of fact, from a cumulative forecast is
projected from 2017-2022 of 579.9 gigawatts.
So, picture 1 gigawatt equals 2,572,059.73
troy ounces of silver, by 2022 thats a total of
nearly 1.4 billion ounces of silver.
Indias Demand For Silver Has Increased Over
600%
 SILVER IS EXTEMLEY UNDERVALUED

Silver to Gold Ratio 27 Years

The Ratio indicates
that silver is extremely
undervalued Danger Zone:

July 97 April 03 October 08

$4.18oz $4.34oz $8.40oz
December 15
$13.62oz

October 08
$8.40oz

December 15
$13.62oz

July 97 April 03
$4.18oz $4.34oz

Examine (Top Chart) the silver to gold ratio from January 1990 till June 2017. By taking a closer look at the chart
and if you notice when it drops to 0.012 it indicates that silver is extremely undervalued. Also, look at the silver
chart (Bottom Chart) which shows when the secular bull market started for silver. The red-line (Long-Term Support
Upward Trendline) clearly shows that silver has bottomed in our professional opinion. The blue-line (Support Line)
represents an approximate 8 year floor. The resistance from 2006-2008 became the support in 2015-2016,
another great indicator for long-term support. Based on the silver-to-gold ratio and the silver landing on both long-
term support lines, we anticipate a multi-year rally. Remember BUY LOW and SELL HIGH, todays prices are on sale.
 Weekly Chart
These momentum proxy MAs (50MA
& 200MA) have only crossed 4 times
before in last 25 years and each time
has shown a predictive 3 - 10yrs
subsequent market direction. Last
Time This Happened Silver Gained
Over 200% to 400%.

*No Guarantees it wont go below $13.62oz

Risk:
-$3.25oz
Reward:
+$32.95oz

US-Iraq
War

Jun-2017

The (Top Chart) weekly chart represents a much stronger support and resistance indicators than a daily
chart. These momentum proxy MAs (50MA & 200MA) have only crossed 4 times before in last 25 years and
each time has shown a predictive 3 - 10yrs subsequent bull market. Very simply put, when the short term 50
MA line crosses back above the longer term 200 MA line is whats called a golden cross a bullish technical
indicator.

The (bottom chart) gold-to-silver ratio is one of the strongest indicators that investors follow which indicates
whether silver is more undervalued vs gold and vice versa. When the ratio rises near or above 80:1 silver has
proven time and time again, significant price movements. Whats also important the historical ratio is about
10-15:1 and the ratio is poised to make a move back down to those levels based on world financial,
economic, and political uncertainties but most of all the supply/demand imbalance and mining production
set to fall in a big way in the years to come.
 Daily Chart: Short Term Cup And Handle
Breakout.

Weekly Chart:
Medium/Long
Term Cup And
Handle Breakout.

Quarterly Chart: $100oz

Long Term Cup
And Handle
Breakout.
 The Case For a Move Back To $50oz $100oz And $200oz
Fundamentals:
Demand stronger than ever hitting new highs
Silver bars & coins will remain strong in demand and anticipated to get stronger in the
future
Investors buying 5 times more silver than gold and will grow stronger due to prices so
low
Solar energy stronger than ever and continued to increase in a big way from countries
like China and India going green
Other industrial applications needed for everyday living
Supply falling and expected to fall to levels not seen in years
Peak production in 2015
Mining production anticipated to fall by 1/3 over the next several years
Fuel consumption ratio rising and will increase over the years to come
Scrap supply falling and not showing any signs of strengthening
4.5-year supply deficit and going to continue
Economies & Currencies weaker than ever before
Debt rising faster than Gross Domestic Product (GDP)
A fragile international monetary system that is debt-laden to the full
Fiat ERA, currencies no longer backed by gold and countries can print money out of thin
air
Central Banks printing at the fastest rate in history over $14 Trillion since 2009
All time low interest rates: Central Banks rising interest rates(USA) others in a negative
interest rate environment(ECB)
Geopolitical, Financial, and Economic uncertainties rising significantly
Overvalued stock markets
Technical:
Technical indicators for silver are at a major turning point and has some of the strongest indicators
aligning ever
Silver broke through a 4.5-year downtrend and is now 67% off the high of $49.82oz with
minimal risk
Gold-To-Silver ratio high indicating its more undervalued than gold to own and very well
could go back to its normal historical ratio of 10:1 to 15:1 and when this happens expect
to possibly see $200oz if not more
Silver already had a bear cycle from 2011-2015, broke its downtrend and just getting
started on a new uptrend with a potential move back to $50oz
Silver long term support line has held strong for 15 years bouncing off it twice
Since 1978 till 2017 silver has formed the longest Cup and Handle technical breakout
formation pointing towards $100oz

Furthermore, it appears to be the first time that these ideal economic conditions for a rise in silver prices align in such a timely
manner; interest rates, the peak in stock markets, as well as the coming collapse of the monetary system. Potentially, these
events can happen within a two- to three-year period.
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