Analysts are affirming a shift in the case for silver as a longer-term investment, and there several good reasons to support their claims. While this white metal has remained stable over the last two years, an upward trend is worth noting. The average trading price for 2023 thus far is $22.79 per troy ounce in the US, already up $2.03 since 2022, where we saw an average trading price of $21.76. According to Trading Economics, silver is expected to trade at $22.89 by the end of the first quarter. In fact, some analysts actually predict that this shiny metal could hit a 9-year high of $30 up to as much as $50 per troy ounce by the end of this year.
New Facts About Silver
A compilation of new and interesting facts about silver are convincing every American to rethink their investment strategy for this long-standing precious metal.
- Silver may be trumping gold as a hedge against inflation during this unique period of economic and geopolitical uncertainty.
- Recent fluctuations across all of the markets, from bonds, stocks and even crypto, are putting silver on the rise.
- Silver in the form of coins often has greater divisibility, which results in easier purchasing.
- Silver in the form of bars offers lower production costs that may be passed on to the buyer or have a monetary advantage for the seller.
- Investors that own the most US silver today include the Hunt Brothers, Charlie Munger, Berkshire Hathaway, JP Morgan Chase, and Warren Buffett. Buffett invests in silver, but not gold.
- It takes 18-34 grams of silver for one hybrid vehicle and 25-50 grams of silver for one electric vehicle.
- Silver is in continuous demand due to the myriad of critical industrial applications that ultimately impact every person in the nation.
A silver investment is peaking interest by sole and corporate investors, banks, foreign entities, and industrial corporations, which makes this commodity extremely popular, especially in our wavering market.
The Supply State of Silver
The supply state of silver is driving the demand and the price upward for a potential silver bull market this year. New data supports a bullish year for silver, mainly due to some recent changes in the silver market. The following points may suggest why investors and others are now anxious to get ahold of silver soon:
- Support data by Butler Research LLC., from December 2022 shows evidence of great turnover in silver by Commodity Exchange, Inc. (COMEX) silver warehouses over recent years. It is noted that JPMorgan has, “become the largest warehouse in the COMEX system, which now number 9 silver warehouses and 8 gold warehouses … around the NY metropolitan area… over the past 12 years, at least 250 million oz of silver were physically moved annually in and out from the COMEX silver warehouses, a grand total of 3 billion oz … the pace of their physical turnover appears to be accelerating.” JPMorgan owns at least 600 million ounces of silver.
- Silver is critical for worldwide industrial supply, in which case a decrease in silver could be devastating for fabricators and other corporations that rely on shipments as needed. This in fact may cause stockpiling of silver, which could in turn speed up a depletion of the precious metal. Prices will go up. Time to invest now while silver lasts and the price is relatively low.
- In a CPM-Group article, it is noted that mine production in the largest silver producing countries including the United States was up between the years 2000 to 2016, but it has steadily dropped in the last six years. As to why, they state, “It’s largely the result of declining grades at existing projects, a lack of new discoveries, and very few new mines coming online.” In addition, they say, “The ten largest silver countries have produced 12% less silver just since 2016. And when we zero in on the primary silver mines, we find that mine “capacity” (the amount of new metal expected to come online in any given year) has essentially disappeared.”
- Finally, keep in mind the impact that the environmental, social governance (ESG) movement has on mining. This worldwide effort has put a stop to any “non-sustainable” industry practices by those pushing this theory. This has a huge impact on the mining industry, as they are pressured to do their jobs under strict legal environmental guidelines.
Supply and demand issues over silver are concerning for many. Now is the time to respond.
Get Started With Silver
For more information and the perfect source for a silver investment, contact the Reagan Gold Group, a USA-based company that can support investor interest in this fine metal. With the price already rising and supplies diminishing, now is the time to make a silver or precious metals IRA purchase. Don’t wait another day.