It's Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand.
Well, a potentially very profitable twist on that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame.
But the exciting opportunity for investors is that precious metals, like silver, are among the only assets that can see higher demand when prices rise. It's just not what normally happens in "regular" markets.
But, to be fair, silver (and gold) are anything but normal markets.
Silver supplies risk falling short of demand for some time to come. In mid-December 2017, I said silver would likely tack on steady double-digit gains before entering a "Tulip Mania"-style profit frenzy.
I think these charts confirm my suspicions. It's likely we're in the early innings of spiraling silver prices as more and more investors decide they simply can't let this bull leave them behind...
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.