A year ago, I pointed out that silver was becoming a great investment. Since then, silver prices have jumped over 28% while the Nifty Stat has barely moved up by just 2.2% (as of March 23, 2024). Right now, it looks like silver is getting ready for another big rise!
Usually, gold and silver prices go up and down together. But recently, gold has been doing better, outperforming silver by about 8%. This difference might mean it’s time for silver to catch up!
Here’s how silver and gold have performed:
– 6 Months: Silver up 6.34% | Gold up 14.65%
– 1 Year: Silver up 41.19% | Gold up 42.17%
– 5 Years: Silver up 71.86% | Gold up 75.75%
Currently, silver is about 9% lower than its highest price ever, while gold is just 2% away from its peak. This shows that silver has room to rise even more. A chart shows that when the prices of silver and gold get far apart, silver often bounces back stronger.
Looking at silver’s past, we see it often jumps up by 50% before taking a break, and then goes up again. Right now, silver is ready to go up about 17% from where it is today.
Why else is silver looking good?
1. Economic Uncertainty: With worries about trade rules and tariffs, many countries are starting to add silver into their reserves, not just gold. For example, Russia is buying more silver.
2. Industrial Use: Silver is used in many new technologies. For example, regular cars need about 14-18 grams of silver, but electric cars need even more: 30-40 grams! It’s also important in solar power and space technology.
3. Supply and Demand: The World Silver Survey 2024 shows that silver production is staying the same, but industrial demand is actually going up by 11%. This means there could be more demand than supply, pushing prices even higher. There’s a big concern that by 2030, we could see a huge shortage of silver!
Considering all these points – from economic trends to increased use in new tech – silver looks set to do better than gold in the coming months.
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