Gold (GCY00) is often considered a "safe haven" investment and is commonly used as a hedge against inflation, currency fluctuations, and geopolitical uncertainties. It is seen as a long-term store of value and a means of preserving wealth.
However, silver (SIY00), is also looked by many investors as a store of value in uncertain times. Silver is also viewed as an industrial metal with investment potential.
Silver tends to be more volatile than gold. It can experience larger price swings and fluctuations, which may offer both opportunities and risks for investors. The higher volatility of silver can result in potentially higher returns during bullish market conditions but also increased risks during market downturns.
After dropping below $18 per ounce in September 2022, silver is now back above $25.
Last week, Silver prices just climbed to their highest in a year, and some analysts believe there’s room for the metal to break its all time high of $50 per ounce if gold’s bullish trend continues.
Global silver demand grew about 18% last year, with the industrial market posting a record of 556.5 million ounces, according to the Silver Institute.
The World Silver Survey expects another silver supply deficit of 142.1 million ounces this year. In other words, we could have fewer inventories by the end of 2023, and now could be a great time to enter the market.
On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
