Silver’s Recent Performance <\/strong><\/h2>\n\n\n\nSilver recently broke a key resistance level of $30 per ounce, marking the first time in over a decade it has reached this price. The last time silver surpassed $30, it quickly rose to nearly $50 per ounce in 2011. Despite a recent selloff bringing silver below $30, its performance is reminiscent of past bull runs.<\/p>\n\n\n\n
Comparing Silver and Gold <\/strong><\/h2>\n\n\n\n![\"\"\/](\"https:\/\/www.moneymetals.com\/uploads\/content\/Comparing-Silver-and-Gold-Mike-Maharrey-Joshua-D-Glawson-Money-Metals-Exchange.jpg\")
<\/figure>\n\n\n\nWhile gold has been on a strong bull run, setting records over $2,400 an ounce twice this year, silver has outperformed gold in percentage terms. From its February low to its recent high, gold gained 21.7%, whereas silver surged 44.6%. <\/p>\n\n\n\n
Mike Maharrey<\/a> emphasizes this outperformance: “From its low point in February to its record high, gold gained about 21.7%. But in that same period, silver was up 44.6%.”<\/p>\n\n\n\nHistorically, silver often outperforms gold in bull markets due to its greater volatility and industrial demand. <\/p>\n\n\n\n
Maharrey adds, “Silver has historically outperformed gold in a gold bull market, so if you’re bullish on gold, you should be even more bullish on silver<\/a>.”<\/p>\n\n\n\nIndustrial Demand for Silver <\/strong><\/h2>\n\n\n\nSilver’s price swings are influenced by its significant industrial use<\/a>, accounting for 50-60% of annual demand. This percentage is growing due to green energy applications, particularly in solar panels. <\/p>\n\n\n\nBy 2027, solar manufacturers may require over 20% of the current annual silver supply, and by 2050, they could use 85-98% of global reserves. <\/p>\n\n\n\n
Maharrey notes, “Solar manufacturers will likely require over 20% of the current annual silver supply by 2027, and by 2050, solar panel production is projected to use approximately 85 to 98% of the current global silver reserves.”<\/p>\n\n\n\n
Silver’s Historical Role as Money <\/strong><\/h2>\n\n\n\n![\"\"\/](\"https:\/\/www.moneymetals.com\/uploads\/content\/Silver-s-Historical-Role-as-Money-Mike-Maharrey-Joshua-D-Glawson-Money-Metals-Exchange-Sound-Money-Defense-League.jpg\")
<\/figure>\n\n\n\nSilver has historically been used as a transactional currency<\/a> due to its lower value by weight compared to gold. This makes it suitable for daily transactions, whereas gold is better for storing wealth. <\/p>\n\n\n\nMaharrey states, “Silver is money. It really is a daily natural form of money compared to gold, and it makes a perfect kind of money.”<\/p>\n\n\n\n
The Gold-Silver Ratio <\/strong><\/h2>\n\n\n\n![\"\"\/](\"https:\/\/www.moneymetals.com\/uploads\/content\/The-Gold-Silver-Ratio-Mike-Maharrey-Joshua-D-Glawson-Money-Metals-Exchange.jpg\")
<\/figure>\n\n\n\nThe gold-silver ratio (gold:silver ratio; gold-to-silver ratio), a tool to compare their prices<\/a>, indicates that silver is historically underpriced. Currently hovering around 78:1, this ratio is above its 20-year average of 68:1, suggesting that silver has room to grow to close this gap. <\/p>\n\n\n\n“The current gold-silver ratio indicates that the price of silver still needs to increase by a pretty sizable amount to close that gap,” says Maharrey.<\/p>\n\n\n\n
Maharrey also explains the significance of the gold-silver ratio in historical context: <\/p>\n\n\n\n
“In the modern era, that ratio has averaged between 40:1 and 60:1, and if you go back over the last 20 years, it’s averaged 68:1. In other words, even with the recent rally in the silver price that has closed the gold-silver ratio up a bit, it’s still above the 20-year average and far above the average in the modern era.”<\/p>\n\n\n\n
He further elaborates on how the ratio can signal investment opportunities: <\/p>\n\n\n\n
“When the gold-silver ratio gets far above the high end of that historical average, it tends to snap back to the mean with a vengeance. For instance, in 2020, the gold-silver ratio climbed to a record of 123:1 as COVID hysteria gripped the world, and then it plunged to around 60:1 as central banks around the world cranked up the money creation machine.”<\/p>\n\n\n\n
Supply and Demand Dynamics <\/strong><\/h2>\n\n\n\nSilver demand has outstripped supply for the third consecutive year in 2023. While total demand dropped 7% to 1.2 billion ounces from a record high in 2022, mine output also fell by 1% to 843.5 million ounces. This led to a significant structural deficit of 184.3 million ounces. <\/p>\n\n\n\n
Industrial demand, particularly from green energy applications, continues to drive silver consumption. <\/p>\n\n\n\n
Maharrey highlights, “Today, silver demand outstripped silver supply for the third straight year in 2023.”<\/p>\n\n\n\n
Insights from Peter Krauth <\/strong><\/h2>\n\n\n\n![\"\"\/](\"https:\/\/www.moneymetals.com\/uploads\/content\/Insights-from-Peter-Krauth-Great-Silver-Bull-Joshua-D-Glawson-Money-Metals-Exchange.jpg\")
<\/figure>\n\n\n\nMike Maharrey also references insights from Peter Krauth<\/a>, author of The Great Silver Bull<\/em>. <\/p>\n\n\n\nMaharrey praises Krauth’s expertise: <\/p>\n\n\n\n
“I interviewed Peter Krauth, he’s the author of The Great Silver Bull<\/em>. This was a few weeks back<\/a>, and that’s a great book by the way.”<\/p>\n\n\n\nKrauth explains the historical use of silver<\/a> as money: <\/p>\n\n\n\n“He pointed out that silver was probably used as money even before gold. Here’s how he explained why: ‘Because silver relative to gold<\/a> has a lower value by weight, it is easier to use in daily transactions. I’ve heard before a few times that it’s estimated that throughout history there has been more business transacted through silver than gold because gold is a way that you store wealth rather than use it to transact.'”<\/p>\n\n\n\nGlobal Demand for Silver <\/strong><\/h2>\n\n\n\nInvestment demand for silver is rising, especially in Asia. China’s silver stock at the Shanghai Futures Exchange has fallen to a 10-year low, with investment demand causing premiums to run about 10% over New York prices. Similarly, India’s silver imports in the first four months of 2024 exceeded the total for 2023, driven by solar panel production and investor interest.<\/p>\n\n\n\n
Conclusion <\/strong><\/h3>\n\n\n\n![\"\"\/](\"https:\/\/www.moneymetals.com\/uploads\/content\/Not-All-That-Glitters-is-Gold-Mike-Maharrey-Joshua-D-Glawson-Money-Metals-Exchange.jpg\")
<\/figure>\n\n\n\nGiven the strong supply and demand dynamics, historical underpricing relative to gold, and rising industrial use, silver presents a compelling investment opportunity. The gold-silver ratio suggests silver is still significantly undervalued, making it an attractive option for diversifying investment portfolios. <\/p>\n\n\n\n
Maharrey concludes, “Given all of this, the Silver Institute projects total silver demand will grow by a healthy 2% this year<\/a>, which almost certainly means another big market deficit.”<\/p>\n\n\n\nFor those interested in investing in silver<\/a>, now may be a good time to consider purchasing. Contact Money Metals Exchange to speak with a precious metals specialist or visit our website for more information and to make purchases securely online.<\/p>\n\n\n\nRead more at the original source here<\/a>:<\/p>","protected":false},"excerpt":{"rendered":"10 June 2024 By Mike Maharrey, Money Metals Exchange: Silver’s Recent Performance Silver recently broke a key resistance level of $30 per ounce, marking the first time in over a decade it has reached this price. The last time silver surpassed $30, it quickly rose to nearly $50 per ounce in 2011. Despite a recent… Read More »Silver shines in the precious metals market<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":3901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-silver"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/comments?post=4362"}],"version-history":[{"count":1,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362\/revisions"}],"predecessor-version":[{"id":4363,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362\/revisions\/4363"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media\/3901"}],"wp:attachment":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media?parent=4362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/categories?post=4362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/tags?post=4362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/figure>\n\n\n\nWhile gold has been on a strong bull run, setting records over $2,400 an ounce twice this year, silver has outperformed gold in percentage terms. From its February low to its recent high, gold gained 21.7%, whereas silver surged 44.6%. <\/p>\n\n\n\n
Mike Maharrey<\/a> emphasizes this outperformance: “From its low point in February to its record high, gold gained about 21.7%. But in that same period, silver was up 44.6%.”<\/p>\n\n\n\n Historically, silver often outperforms gold in bull markets due to its greater volatility and industrial demand. <\/p>\n\n\n\n Maharrey adds, “Silver has historically outperformed gold in a gold bull market, so if you’re bullish on gold, you should be even more bullish on silver<\/a>.”<\/p>\n\n\n\n Silver’s price swings are influenced by its significant industrial use<\/a>, accounting for 50-60% of annual demand. This percentage is growing due to green energy applications, particularly in solar panels. <\/p>\n\n\n\n By 2027, solar manufacturers may require over 20% of the current annual silver supply, and by 2050, they could use 85-98% of global reserves. <\/p>\n\n\n\n Maharrey notes, “Solar manufacturers will likely require over 20% of the current annual silver supply by 2027, and by 2050, solar panel production is projected to use approximately 85 to 98% of the current global silver reserves.”<\/p>\n\n\n\n Silver has historically been used as a transactional currency<\/a> due to its lower value by weight compared to gold. This makes it suitable for daily transactions, whereas gold is better for storing wealth. <\/p>\n\n\n\n Maharrey states, “Silver is money. It really is a daily natural form of money compared to gold, and it makes a perfect kind of money.”<\/p>\n\n\n\n The gold-silver ratio (gold:silver ratio; gold-to-silver ratio), a tool to compare their prices<\/a>, indicates that silver is historically underpriced. Currently hovering around 78:1, this ratio is above its 20-year average of 68:1, suggesting that silver has room to grow to close this gap. <\/p>\n\n\n\n “The current gold-silver ratio indicates that the price of silver still needs to increase by a pretty sizable amount to close that gap,” says Maharrey.<\/p>\n\n\n\n Maharrey also explains the significance of the gold-silver ratio in historical context: <\/p>\n\n\n\n “In the modern era, that ratio has averaged between 40:1 and 60:1, and if you go back over the last 20 years, it’s averaged 68:1. In other words, even with the recent rally in the silver price that has closed the gold-silver ratio up a bit, it’s still above the 20-year average and far above the average in the modern era.”<\/p>\n\n\n\n He further elaborates on how the ratio can signal investment opportunities: <\/p>\n\n\n\n “When the gold-silver ratio gets far above the high end of that historical average, it tends to snap back to the mean with a vengeance. For instance, in 2020, the gold-silver ratio climbed to a record of 123:1 as COVID hysteria gripped the world, and then it plunged to around 60:1 as central banks around the world cranked up the money creation machine.”<\/p>\n\n\n\n Silver demand has outstripped supply for the third consecutive year in 2023. While total demand dropped 7% to 1.2 billion ounces from a record high in 2022, mine output also fell by 1% to 843.5 million ounces. This led to a significant structural deficit of 184.3 million ounces. <\/p>\n\n\n\n Industrial demand, particularly from green energy applications, continues to drive silver consumption. <\/p>\n\n\n\n Maharrey highlights, “Today, silver demand outstripped silver supply for the third straight year in 2023.”<\/p>\n\n\n\n Mike Maharrey also references insights from Peter Krauth<\/a>, author of The Great Silver Bull<\/em>. <\/p>\n\n\n\n Maharrey praises Krauth’s expertise: <\/p>\n\n\n\n “I interviewed Peter Krauth, he’s the author of The Great Silver Bull<\/em>. This was a few weeks back<\/a>, and that’s a great book by the way.”<\/p>\n\n\n\n Krauth explains the historical use of silver<\/a> as money: <\/p>\n\n\n\n “He pointed out that silver was probably used as money even before gold. Here’s how he explained why: ‘Because silver relative to gold<\/a> has a lower value by weight, it is easier to use in daily transactions. I’ve heard before a few times that it’s estimated that throughout history there has been more business transacted through silver than gold because gold is a way that you store wealth rather than use it to transact.'”<\/p>\n\n\n\n Investment demand for silver is rising, especially in Asia. China’s silver stock at the Shanghai Futures Exchange has fallen to a 10-year low, with investment demand causing premiums to run about 10% over New York prices. Similarly, India’s silver imports in the first four months of 2024 exceeded the total for 2023, driven by solar panel production and investor interest.<\/p>\n\n\n\n Given the strong supply and demand dynamics, historical underpricing relative to gold, and rising industrial use, silver presents a compelling investment opportunity. The gold-silver ratio suggests silver is still significantly undervalued, making it an attractive option for diversifying investment portfolios. <\/p>\n\n\n\n Maharrey concludes, “Given all of this, the Silver Institute projects total silver demand will grow by a healthy 2% this year<\/a>, which almost certainly means another big market deficit.”<\/p>\n\n\n\n For those interested in investing in silver<\/a>, now may be a good time to consider purchasing. Contact Money Metals Exchange to speak with a precious metals specialist or visit our website for more information and to make purchases securely online.<\/p>\n\n\n\n Read more at the original source here<\/a>:<\/p>","protected":false},"excerpt":{"rendered":" 10 June 2024 By Mike Maharrey, Money Metals Exchange: Silver’s Recent Performance Silver recently broke a key resistance level of $30 per ounce, marking the first time in over a decade it has reached this price. The last time silver surpassed $30, it quickly rose to nearly $50 per ounce in 2011. Despite a recent… Read More »Silver shines in the precious metals market<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":3901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-silver"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/comments?post=4362"}],"version-history":[{"count":1,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362\/revisions"}],"predecessor-version":[{"id":4363,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/4362\/revisions\/4363"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media\/3901"}],"wp:attachment":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media?parent=4362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/categories?post=4362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/tags?post=4362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Industrial Demand for Silver <\/strong><\/h2>\n\n\n\n
Silver’s Historical Role as Money <\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nThe Gold-Silver Ratio <\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nSupply and Demand Dynamics <\/strong><\/h2>\n\n\n\n
Insights from Peter Krauth <\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nGlobal Demand for Silver <\/strong><\/h2>\n\n\n\n
Conclusion <\/strong><\/h3>\n\n\n\n
<\/figure>\n\n\n\n