With gold and silver surging on Friday, and the West’s desperate and massive money printing schemes as a backdrop, Michael Belkin is right, the price of silver is headed into the stratosphere.
Stephen Leeb: “I’ve long been haunted by a brief article published in Foreign Affairs in 1995, written by Japan’s Eisuke Sakakibara, who at the time was Japan’s finance minister. Sakakibara presciently mused on how the near-certainty of resource scarcities would reshape our world. The article still resonates and contains a potent message for investors today – which is that owning silver and gold will gain you not just wealth (though it will get you a ton of that) but also something perhaps even more precious, a sense of security in a tumultuous world…
Continue reading the Stephen Leeb interview below…
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Stephen Leeb continues: “Noting that both communism and capitalism sought rapid increases in material welfare, Sakakibara argued that resource limitations inevitably would impose constraints on pursuing this goal over the longer term, with technology proving unable to overcome such limitations. He wrote: “Confidence in human competence and technology could properly be termed a myth because there is no logical reason to believe such path-breaking technological change will occur. It is akin to believing that someday the savior will come down to earth in the form of technological innovation and for some reason reverse all the problems that past progress has wrought.”
In other words, believing that technology can fix the problem of scarcities brought on by continued gains in material wealth is akin to religious faith. And while anyone is free to adhere to that religion, when it comes to faith it’s probably wiser to stick with religions that have been around much longer than capitalism, whether Christianity, Judaism, Buddhism, Islam, Hinduism. Or even no religion at all.
Looking at the world today, it seems clear that it’s the East – China and India along with Japan – that has best grasped that material growth cannot continue indefinitely. This inclines those countries to set their sights on reaching some achievable shorter-term material goals and then maintaining them, without pressing ever higher.
China Plans For Long-Term Clean Energy…
China, for instance, has set itself the goal of an average income level equivalent to about $20,000 by 2020. This may turn out to be its long-term goal as well. In other words, the East might decide that once its people’s basic needs are satisfied, it has achieved as much individual material well being as it can. It will then move on to goals such as better health care, clean streets, and a cleaner environment.
…Will Cause Silver To Become Scarce At Any Price
The upshot is that the East will likely be seeking to produce enough clean energy to maintain a moderate level of material wealth. If that sounds like good news for America and the West, think again. It will be virtually impossible without a technological miracle to accelerate the transition to clean energy – which is exactly what the East is planning to do – without creating massive resource scarcities. And that leads us back to silver, which is likely to be the first major commodity to become scarce at any price.
Meanwhile, In Japan…
It’s fitting that in 2020, Japan will host the Summer Olympics for the first time since 1964. The year 1964 marked the start of Japan’s ascendancy to a super economic power. Since 1990, its economic growth has been non-existent, but the assumption has been that Japan still seeks increased material well being. But 2020 may mark the year in which Japan officially moves from a pursuit of material growth to a focus on maintaining the material goods it has while aiming for a better and healthier environment.
…The Olympics – And Tokyo Will Be Going For The Silver
Tokyo’s government, headed by Yoichi Masuzou, has adopted as its 2020 Olympics slogan “Tokyo 2020: Giving Priority to the Environment.” In the wake of the 2011 nuclear disaster at Fukushima, nuclear energy’s role will likely be circumscribed. Not so for solar. Its growth has been accelerating since 2011, and it will likely accelerate further, aided perhaps by tax incentives in the next couple of years, for as long as silver is readily available.
Massive Demand For Silver To Trigger Shortages & Skyrocketing Prices
As I noted recently, with silver production peaking, the growth in solar energy, which requires about 2.8 million ounces per gigawatt, could consume more than a year’s worth of silver production in the years 2016-2020, requiring the world to use stockpiled global inventories to meet demand. As we enter the next decade, silver is nearly sure to be in critically short supply. Though China because of its size will lead in solar deployment, Japan will likely be a surprisingly close second and is almost certain to end up with much more solar power than the far bigger U.S.
In addition to Tokyo’s government, several Japanese organizations have joined in issuing environmental statements. One that caught my eye said: “Triggered by the Tokyo 1964 Olympic games, Japan achieved high economic growth and became one of the major economic powers. On the other hand, Japan has placed an unsustainable burden on our planet as a result of this growth. The research results from The Living Planet Report 2014 shows that we would need an equivalent of 2.3 planets if everyone in the world lived in the same lifestyle as the average Japanese citizen does.”
Solar is the ideal renewable energy, as it can be used by the grid and easily distributed to individual homes. Unlike wind, it requires very little energy to create. Wind requires massive amounts of steel, which means massive amounts of hydrocarbons. Solar is clean to use and clean to make. For those reasons it is likely to be the fastest-growing energy source until a crunch in silver supplies constrains its growth.
The Price Of Silver Is Headed Into The Stratosphere
I rue the fact that America will lose the solar race, but for investors, take consolation in buying silver and in particular investing in silver mines. Why mines more than coins or silver bullion? Because as silver become scarce, governments could well forbid individuals to hold the metal. Moreover, silver’s role as a currency will likely turbo-boost the bull market in this metal once its scarcity starts coming into focus. The price of silver will easily top three digits, while virtually any credible silver mine will also shoot to the moon…To learn more about the coming surge in the price of silver as well as which stocks to buy you can listen to the extraordinary interview with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: Top Advisor To Biggest Money On The Planet Says Gold & Silver To Skyrocket To New All-Time Highs CLICK HERE.
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