EDR:CC - Silver's Structural Deficit Suggests Higher Prices Ahead

2024-07-20 01:06:24 ET

Summary

• My view of silver is that it will remain in demand and that it should form part of any investment portfolio.
• If you are new to this sector, I would suggest that you acquire some physical silver bars and coins as a top priority.
• As a second priority, look to acquire some of the top quality silver producers as they offer leverage to the underlying commodity of silver.
• Once your investment funds have been allocated, be prepared for a white-knuckle ride and hold on to your position.

Introduction

The price of gold is now trading at all-time highs of around $2450/Oz; however poor man’s gold, silver trades at around $30.00/Oz which is long way down from its all-time highs of around $50.00/Oz. Given that silver has a store of value use the same as gold and that it also has an industrial use and most of the mined silver is used and not stored I would expect the price of silver to at least keep pace with the price of gold, if not surpass it in percentage terms. In an attempt to understand silver’s behavior I would draw your attention to the recent press release from The Silver Institute which provides a useful insight regarding silver's supply and demand metrics, etc....

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