Silver may soon be headed for a big breakout, and here’s why: global demand is rising,
industrial uses for silver are increasing, supply is falling, and sentiment is low.
Global Demand is Rising
Though coin sales are down, the demand for physical silver is rising around the globe. Demand
from China is again at an all-time high as they continue to add to their storehouses. In fact,
silver demand in the Chinese market hasn’t decreased in well over a decade. Even through the
2008 financial crisis China continued to be a big buyer of physical silver, and their need has only
grown over time. In addition to China, India’s own demand has risen exponentially from
Industrial Use is Increasing
The demand for silver has also increased as the solar energy and “green” vehicle industries
continue to grow. Battery-powered automobiles are built using more silver than traditional
fuel-powered automobiles. Silver is also a key manufacturing material in solar panels, which
continue to rise in popularity as the world seeks renewable energy sources. In some places
solar panels are even becoming a requirement, with California recently passing a law that new
houses must be equipped with solar panels to support energy conservation. As industry and
technology expand, the demand and need for silver will continue to grow as well.
Supply is Falling
CPM Group reported that almost 45% of all silver mined on record is now in a landfill, indicating
that silver tends to be consumed and not recycled. It is used in automobiles, cellphones,
televisions, and the list goes on. With such a high demand, it is only a matter of time until silver
is in short supply. In fact, the supply has reportedly dropped the last five years in a row, and
according to the CPM Silver Yearbook 2018, the decline in mine supply is expected to continue
to drop over the next decade, depleting reserves. There is no longer a way to mine it profitably
with what is found in the ground, due to the absence of a rich pipeline.
Sentiment is Low
Lastly, the sentiment for silver is very low right now, which often signals a great time to buy.
Investors often look to commodities like crude oil and gold as wealth insurance or a hedge on
the dollar or equity markets. Silver, however, outperformed gold in past recessions and is
currently deeply underpriced, preparing for what I believe will be a massive bull market.
When it comes to wealth insurance there is no wrong answer between silver and gold. With
these simple facts in mind, I am personally purchasing physical silver as it has the most profit
potential in turbulent times and has the best signs of a bullish market to come. Call or email us
today to become contracted or to insure your portfolio with physical gold and silver.