Hi,
While silver has always played second fiddle to gold in the precious metals world, that could be about to change. With industrial demand soaring, supply tightening, and investor interest reviving, the question on everyone’s mind is: can silver reach new highs in the next 5 years?
While no one knows what the future holds, there are several indicators that suggest that the prospects for silver have never looked better.
Industrial Demand for Silver Is Soaring
While gold is an investment instrument for many people, the same is not true for silver. Not only is industrial demand for silver soaring, but its importance in many industrial processes cannot be ignored.
The world is in the midst of an energy revolution, with many people turning to green energy to power their homes. While solar energy is not new to the world of energy production, its importance has never been more pronounced. With solar energy production consuming massive amounts of silver, the prospects for industrial demand driving up the price of the precious white metal in the coming years appear promising.
Supply of Silver Is Becoming an Issue
While the supply of gold is dwindling fast, the same is not true of silver. However, while the supply of gold is dwindling, the supply of silver is not keeping pace with industrial demand. While many people do not realize it, many of the silver mines in the world are byproducts of other metals such as copper and lead.
This means that while supply is not an issue in the gold world, it is in the world of silver. With supply failing to keep pace with industrial demand, basic economics says that the price of the precious white metal is likely to increase in the coming years.
The Interest of Investors in Silver Is Reviving
In recent years, more and more investors, especially younger ones, have been accumulating physical silver as part of their portfolios. The lower price of silver compared to gold makes it more attractive to invest in, as more silver can be bought with the same money, thus allowing the potential to profit from the price movements in the future.
The Gold to Silver Ratio: A Signal of Potential
The gold to silver ratio is the number of ounces of silver needed to buy one ounce of gold. In the past, this number has been high when silver has been undervalued in relation to gold.
Although the gold to silver ratio varies, in the past, high readings of this ratio have been followed by big runs in silver. In the coming years, this ratio may contract, and silver could outperform gold, going to new all-time highs.
What Does All of This Mean to Investors?
Silver’s performance in the coming years will depend on the performance of the world’s economies, as well as the level of interest from investors. Although silver’s price surges are no guarantee, the increase in demand and the decrease in silver’s available supply make for a compelling case for silver’s potential in the coming years.
Why Many Investors Are Turning to AU Bullion
If you are interested in silver, it is important to work with a reputable dealer, and we are happy to help. With a variety of silver bullion products, as well as the confidence of purchasing from a reputable Canadian bullion dealer, we are the right choice for all of your silver bullion needs, whether you are new to silver or looking to expand an already existing silver bullion portfolio.
Can silver potentially rise even higher in the next five years? Yes, it is possible, and the underlying trend is showing that silver is gaining momentum. For those looking for investment opportunities and security, silver is certainly an asset that should not be overlooked in the coming years.
