DISCLAIMER: This is not financial advice.
As the world economy tumbles, many are exiting the stock and cryptocurrency markets. However, rising inflation paints an uncertain future for fiat currencies. As a result, some are looking for alternatives.
Gold is often seen as one of the safest investments. It is viewed as the big brother of silver, and the price reflects this. However, gold’s 1:85 price ratio in comparison to silver is questioned by many analysts, some of which pin the blame on manipulation by JP Morgan. The fact that for every ounce of gold mined, only about 9 ounces of silver are mined, should already put the 1:85 price ratio into question.
Silver has several key advantages. Most notably its industrial applications. These include:
- Solar energy components, including solar panels
- Medical equipment, due to anti-bacterial and anti-viral properties
- Coatings for glass, useful in optics
- Water purification
- Electronics components
Demand for silver has been rising and will continue to rise for the next few decades. The rising popularity of solar energy and electric vehicles will ensure a steady increase in industrial demand for silver. To offer some perspective, a single electric vehicle can use up to 50 grams of silver. With combustion engine cars being phased out in many countries, an acceleration in silver use will be spurred.
The new global arms race will also increase the demand for silver. Military electronics and electro-optical systems require silver. Some of the assets which use silver are expendable, such as missiles and drones. Remember, that silver is not only finite but relatively rare.
Silver is considered a hedge against inflation, which means that in periods where fiat currencies suffer, silver can be a safe option for guarding your hard-earned wealth.
At its current price, silver has a lot of potential for growth. Physical silver in the form of bullions or coins are among the cheapest tangible investments. So as a decade of uncertainty awaits, consider adding some silver to your portfolio.