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 When demand for gold and silver surges, there won't be enough new ounces to mine, nor will nor enough miners to dig them up, nor enough schools to edu educate a new generation of miners. In short, it's virtually impossible to fill future demand, at least at today's prices. Something's got to give, and that something is price. But even with a price explosion, there has to be a giant overshoot. No, you can't just come up magically come up with a whole bunch of silver because the price rises. It's

going to take years. It's predicting mid triple digits. And I really do think that we are going there. And we're going there sometime soon. >> Invest and earn up to $2,000 in bonus silver at golds.com. It's easy. Step one, open any golds storage account excluding IRA. Step two, purchase your precious metals. Step three, get up to $2,000 in bonus silver dropped straight into your vault. Visit golds.com/free silver to claim your silver. Hi, it's Mike Maloney and Alan Hibbert

once again with the Gold Silver Show and I believe you have a viewer comment that we are going to respond to, don't you, Alan? >> Yes, I do. Thank you, Mike. Yes, and this is the comment right here. It was on a recent video we did on silver. And Tino says, "Won't a massive supply open up once silver takes off in price? And wouldn't that prevent its further rise in price?" So, in other words, isn't the best cure for high prices high prices? That's sort of what he's thinking here.

If silver can be mined at roughly $11 to $20 an ounce, then the profits for mining and even recycling would be crazy, right? Uh yeah, and he is right that the prophets would be crazy and there will be a rush and that's what the great gold and silver rush of the 21st century is about the book. >> Yeah, I got I got curious about this because 11 to $20 an ounce is first of all a big range and I also thought maybe that's a little cheap. I I wasn't sure that it would it would be like that. So

I did a little research and I found the all-in sustaining cost of silver production. Um, this is a chart I found and going back to 2010, it was roughly $10 per ounce, but as you can see, it's gone up quite significantly since then, hitting $20 an ounce roughly in the co era, like mid2020. And now it's up near $27 an ounce. So, um, it's a bit more expensive to mine, you know, each ounce of silver. And it looks like it will certainly continue to rise. So, the profits won't be quite as significant as

what Tino was suggesting, but they'll still be big, won't they? Uh yes, but this is uh this this is the average cost too. Uh so I would imagine that there is no one mining $10 silver. That that just does not exist. And so uh the cost of mining silver is probably like $22 to uh uh $30, $33. And here we are up at 38 37 38 $39 right now. Uh however only about a third of silver production comes as uh primary silver production. More than twothirds is as a byproduct of mining copper, lead, zinc and gold. When

there is a robust global economy and we're building a lot of homes and we're building cars and we're building stuff and people are all buying stuff and we're all feeling good, then there's demand for those base metals and they just happen to stumble across silver while they're mining those base metals and it gets sold into the market at market prices. What happens when the when the 2thirds of the production slows down because the global economy slows down? Uh so there there's that factor,

but then there's a whole bunch of things that I I need to uh point out. You know, this is from the great gold and silver rush of the 21st century that you and I spent so much time on, Alan. uh as the great gold and silver rush of the 21st century unfolds, explorers and developers will once again proliferate. So this is what the viewer is saying. Uh or will they? These endeavor endeavors are capital inensive and sel seldom rewarding. The path from discovery to production took 5 to 8 years in the 70s.

Now it's more like 10 to 20. So yes, if there's a bunch of profit in there, you are welcome to go and try to open a mine. Good luck with that. It's going to be at least 10 years, but probably more like 15 to 20 before you are actually open and producing. The cost of these pro projects has ballooned to hundreds of millions, if not billions of dollars, and that's for the deposits that are easiest to reach. Now, we mostly focused on gold here, but the same thing goes for silver in all of these uh paragraphs

here. And that's for the deposits that are the easiest to reach, have the highest grades, contain the most ounces, and are located in politically favorable jurisdictions, all of which limits where miners will even go. The hard facts are the number of large deposits discovered in each decade from the 70s through the9s, including included at least one 50 million ounce deposit. I think you've you've got a snapshot. You you um uh so put that up, Aiden, would you? Um yeah, one 50 million ounce deposit and at

least uh 10 30 million ounce deposits. But since 2000, the industry has found no 50 million ounce, no 40 million ounce, no 30 million ounce deposits. Now we are finding just a few 15 million ounce deposits instead. In fact, it's becoming increasingly difficult to find a deposit of just 1 million ounces or more. Now that is gold that we are talking about there. But the same thing goes for silver. Then there's a section called where have all the miners gone? A few years back, my friend and colleague

Jeff Clark of goldadvisor.com noticed that the majority of geologists and mining engineers were between 50 and 80 years old. Who will take up the slack once this generation hangs up their picks and shovels? No one. The all the glamour today is all in software development, artificial intelligence, social media, and so on. You know, we wrote this in in uh uh 21 or 22, but this it it still holds true today. Uh that's where the action is. Dirt, forget about it. The Bureau of Labor Statistics uh

predicts that by 2024, which were already a year past, a third of mining geologists, geological engineers, will likely retire. Well, a lot of them are working a lot later, but they're just getting older, and there's nobody coming up to replace them. Uh, imagine if the tech industry lost onethird of its programmers or a third of the oil industry's engineers called it quits. Both sectors would be devastated. This is precisely what's happening to the mining sector. The next section, the

school of hard rocks. Adding to the problem, the number of accredited US mining engineering and mining technology schools is down to just 13. No schools, no new minors. Students simply don't want to enter the mining sector. How bad is it? In 2020, US schools awarded 1,900 19 I'm sorry, they awarded 199,790 engineer engineering degrees. The number of these grads who were mining engineers was 327. That is 0.16%. 0.16%. To summarize, when demand for gold and silver surges, there won't be enough new

ounces to mine, nor will nor enough miners to dig them up, nor enough schools to edu educate a new generation of miners. In short, it's virtually impossible to fill future demand, at least at today's prices. Something's got to give, and that something is price. But even with a price explosion, there has to be a giant overshoot. No, you can't just come up magically come up with a whole bunch of silver because the price rises. It's going to take years for all of this to go back into balance.

And we've had a deficit, a structural deficit for five years. And then if you add uh the investment demand to it, it's a deficit for seven years that we've had where we're we're gobbling up more silver than is being produced globally. And so we are right at the inflection point right now. And this 45 year cup and handle that uh I identified, I don't remember how far back it was, but I I'm pretty sure I was the first one to identify the big cup and handle. The most recent cup and handle is the handle

of the 45-year cup and handle. And that is predicting exactly what my price target when you inflation adjust the uh 5250 high to today. uh using the currency supply measures uh the Wilshire 5000 real estate GDP all of these things it's predicting uh the it it's mid triple digits and I really do think that we are going there and we're going there sometime soon we have to go there it'll only get worse if there's a crisis if if uh there is uncertainty doubt and people are seeking safe havens and

simultaneously people stop spending on cars and homes and all of these things that require the base metals. So, silver will go into a fundamental shortage at the same time and above ground stock piles have been drawn down because of these structural deficits. What's your what's your take on that, Alan? >> Yeah, I totally agree with you. It's just a matter of time. things are out of balance and uh the the market the price of the silver market has really been determined by paper silver and all of

these things have to unwind eventually. The big question is well when is eventually uh I think it's soon but uh I totally agree with everything you're saying um you know and tack back in 2011 we had a big price spike in in early it was late 2010 early 2011 and it took about six years for the uh output of the mines to sort of catch up uh to that there's always this big delay mining is a very slow it's like watching real estate uh you know real estate crashed actually pretty fast in 2007 8 and n but still it

doesn't crash like it doesn't go up and down like the stock market uh uh it's it's much slower similar to real estate but even more drawn out when it comes to fundamental supply. >> Yeah, exactly. So I really appreciate Tino's comment here and I do think that he's on to something that the the profits for mining and recycling will be crazy. However, because of all the reasons we've said in this video, it's not going to respond as quickly as you might think. Um, you know, there's

there's not that much silver out there. Um, you know, a lot of it is a byproduct of of other mines. Uh, there's no one to go out and prospect. There's no one to dig it up or very few people relative to what there's been in the past. >> Yeah. So, >> and most of the mines have already been, you know, when when prices are low, they do something called high-grading. They go after the best part of the silver vein and they leave the lower grade deposits uh behind, but it takes a lot

lot higher prices to go back and mine that lowgrade ore. And so uh it's it's all a setup for a gigantic explosion uh in price. So yes, uh Tino, you will be uh right eventually. Now, another thing that's in the book, this suggests if it if the profits would be crazy, that also suggests that investing in the mining companies, the recycling companies and and all of that is going to be very good. But I did a it's in the uh second to the last chapter, I believe. Uh I did a study years ago comparing the Baron's

gold mining index, which is just the top tier miners uh to the actual price of gold. And from August 15th, 1971, when gold became free trading, uh when the book was published, uh you would have done eight times better just investing in the physical gold that cannot go broke. It outperformed the mining index by a factor of eight. Uh now, that was back when gold was below $2,000 and now we're up here. So I have no we we have to revisit that study again because it's probably a fa probably a factor of 12 or

more right now. I have no idea at these levels. But here's one thing that I discovered many many years ago. It was on something called the deadcat bounce. A dead cat bounce. uh some trader was being interviewed about some bubble that had happened and then it uh crashed in a stock and then it bounced and he said, "Well, even a dead cat will bounce if you drop it from a high enough point." And so that's a dead cat bounce. The mining the miners uh peaked on gold's dead cat bounce back in 198081.

So, uh, after the physical has peaked, that's really the time to invest in the mining companies. That's all from me right now. Have you got anything else, Alan? >> That's it. I mean, we got a whole lot of information in the book and I would encourage anyone who wants to learn more to go check it out. Only $19 on Amazon. >> Okay. Thank you very much, and thank everybody for watching. >> Invest and earn up to $2,000 in bonus silver at golds.com. Visit golds.com/frees

to claim your silver.