PEAK GOLD vs. PEAK SILVER: Must See Chart

Precious Metals by SRSrocco on July 30, 2015 In addition, the information in this chart will show why the peak of primary gold production will occur before the peak of primary silver production.  However, global silver production will likely peak soon after world gold production.  Thus, individuals understanding the difference, will likely enjoy a rewarding investment strategy most are currently unaware.

As I have mentioned time and time again, ENERGY IS THE KEY to the value of the precious metals.  This goes well above and beyond the percentage of raw energy (oil, natural gas, coal, hydro & nuclear) consumed in the production of an ounce of gold or silver.  Unfortunately, investors do not realize that 90-95% of the value of an ounce of gold or silver is directly related to the amount of energy consumed IN ALL FORMS and IN ALL STAGES in the their production.

Labor is a form of energy.  Upper management pay, is a form of energy (highly skilled energy).  The materials consumed in the gold and silver mining industry get their value from the energy consumed IN ALL FORMS and in ALL STAGES of their production-transportation-distribution.  The mining equipment used in the production of gold and silver also get their value from all the energy consumed in their manufacture (in all forms and stages).