Silver Prices Are Low Now, But Won’t Remain This Low Very Long
Cutting to the chase, the price of silver could skyrocket. I can’t stress this enough: ignoring the gray precious metal could be a big mistake. Great fortunes could be made from silver in the coming years.
The gray precious metal trades around $17.00 an ounce now, but in the next few years, we could be looking at silver prices closer to $50.00 an ounce.
But before going into any details about silver, look at palladium prices.
In August 2018, palladium traded around $815.00 an ounce. In late October of 2019, palladium traded awfully close to $1,800.
So, in little over a year, palladium prices surged by over 120%.
What happened? Palladium is used in pollution-control devices for cars. Thanks to the world turning environmentally friendly and the introduction of new regulations, demand for the metal has increased. But over the past few years, the palladium market was severely suppressed. Then there was a shock to the market, causing the price of palladium to surge.
A Shortage Coming to the Silver Market?
Coming back to silver…
Don’t be shocked if, in the coming years, the silver market sees something very similar to what happened in the palladium market. This could send silver prices soaring in no time.
Here’s what you need to know: the silver market has been suppressed. In fact, calling it “suppressed” may not do the situation justice.
Consider this: every year between 2013 and 2018, the silver market had a deficit. This is when demand is much higher than supply. (Source: “Silver Supply & Demand,” The Silver Institute, last accessed November 27, 2019.)
In 2019, the struggle in the silver supply side has remained. Production hasn’t seen a robust increase. Meanwhile, the demand side has been rising.
Look at mint sales, for example: in the first 10 months of 2019, the U.S. Mint sold 14.4 million ounces of silver in American Eagle coins. In the same period a year ago, silver sales in the form of American Eagle coins were less than 13.6 million ounces. (Source: “Bullion Sales,” United States Mint, last accessed November 27, 2019.)
This represents an increase of 6.2% year-over-year.
But don’t just look at the U.S.; silver investor demand has been increasing globally.
In October 2019, the Australian Perth Mint sold 1.4 million ounces of silver. This was the third-highest monthly silver sales recorded at the mint since 2013. (Source: “Perth Mint October Silver Bullion Sales Rank Third Highest,” CoinNews.net, November 22, 2019.)
In the first 10 months of 2019, the Perth Mint sold 9.2 million ounces of silver in the form of coins and bars. That’s 19.7% higher year-over-year.
Silver Prices Trading at Rock-Bottom Valuations
Dear reader, don’t be shocked if all of a sudden you start hearing phrases along the lines of “shortage in the silver market.” Keep in mind, when that happens, you might be too late to get in on silver. By that time, the price of silver could be much higher.
When I look at the silver market, I can’t help but be bullish. In my opinion, silver prices are currently trading at rock-bottom valuations and they could go up a lot. Give it some time and silver could get close to $50.00 per ounce.