Buenos Dias,
Do you remember the period of time after the financial crisis? From 2009 to 2011, gold and silver prices could not be held back --- prices went soaring, primarily due to the elevated risk levels in the global economy. Today is not so different. Gold recently reached a new record high and many analysts are expecting a breakthrough past $3,000/ounce in the near future. Silver has actually performed better than gold in 2020 but is still far from its 2011 all-time high of $50/ounce. What does this mean? It means that there is enormous potential for silver and silver miners to play catch-up in the coming years.
Here is another aspect to consider -- while gold is highly conductive and stable, it is simply too expensive to be used in industrial applications in meaningful quantities. But silver is much cheaper and is widely used in industrial applications, specifically related to the electrical revolution (EV’s, batteries, etc.). Demand for silver is expected to rise over the coming years.
Now is the time to invest early, while silver stocks are still cheap.
Similar to gold, silver is a valuable precious metal. Although its rarity and price are much less than gold, silver is becoming increasingly scarce and sought-after - for good reason. The central banks of the world print whatever their presses produce. Precious metals, on the other hand, cannot be multiplied so easily. Once they are depleted, they are depleted for good.
Although silver is somewhat more speculative as an investment than gold. Silver prices are prone to much greater levels of volatility. When gold prices move ~1-2%, silver prices will tend to move in the same direction but with more leverage (~2-4%). Despite silver prices currently taking a pause, physical demand remains extremely high – specifically from industrial usage and investment demand.
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So how can one protect oneself against inflation and the never-ending money printing press? … With precious metals! When the price of paper currency falls, the value of gold and silver will increase inherently. Thus, it is crucial to have a precious metals component in any well-rounded portfolio, to hedge against broader market risk. For an investor looking to buy physical precious metals in smaller tranches, silver is the ideal choice as opposed to gold. In fact, silver demand is reaching its highest levels in history. In the first three quarters of this year alone, the demand for silver coins increased by a remarkable 65%.
And the silver ETFs? Here too, things seem to be taking off. Silver demand, specifically from ETF’s, has nearly tripled since the start of the year. An end to the trend is nowhere in sight. Silver bars are also in great demand, especially in the USA and Germany.
Silver has now reached the status of a safe haven, whereby the expectation that silver will continue to clearly outperform gold plays a major role! Therefore, silver stocks are now offering early investors the chance for incredible long-term yields.
Our new silver secret tip from Mexico is in the infant stages and is backed by some of the most successful mining entrepreneurs in the industry. This silver exploration play will benefit from the inevitable price rise in silver and ultimately in silver stocks.