Five Reasons why Silver is the New Black By Alban Guillemot of Gold Bullion Australia
Silver has become an essential part of various industries ranging from automobile, electronics, to jewellery, and more. Additionally, from an investment perspective, it has become an eye candy. Investors are looking forward to safer ways of increasing their short-term gains but silver might rise as an investment resource for long-term gains as well. Is silver the new black? Probably yes, and here is why.
Increasing Commercial Interest in Silver
Gold is a primary investment resource in commercial and private sector. However, commercial sector like banks and corporate elites are purchasing silver. When they purchase it to their fill, the prices of silver will increase, as it is already evident from 11% rise in silver prices in 2016.
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It has become an Industrial, Mechanical, Medical, and Commercial Asset
With its unique chemical properties, silver is used in mobile phones, laptops, industrial goods, and commercial products like cutlery items and jewellery. It is an irreplaceable metal in most of the 21st century goods. The demand of this industrial asset will rise with time, which is why the investors are already stocking it up for trade.
Global Currency and Political Turmoil
The largest competitor of the white metal in the market is gold. Platinum is also a strong competitor but it has a small share in the market. Silver, in contrast, is common man’s gold. Gold prices increase during socio-political unrest times in the country. The geopolitical unrest and uncertainty in global currency has resulted in uncontrollable shifts in gold and real estate prices. Bonds also crash with the crashing economies. In this scenario, the white metal is the only resource that grows uninterruptedly.
The Bull of 2016
During the beginning months of 2016, the white metal emerged as the bull of metal race. Prices had reduced by 15% in 2015. In 2016, the prices hiked up with around 9% rise in January and total 11% rise in February. However, the metal lost its battle against gold and gold prices increased. Prices remained depressed. The price gap between gold and the white metal widened, making gold a precious metal to sell only. With depressed price, it is high time to invest in silver and store it for profit-making days.
Reduction in Silver Investment by Miners
According to March 2016 reports, the undervalued price of the white metal has led to reduced interest of miners in the white metal . If the trend continues, the production of the white metal will fall more and the price of mined the white metal will increase by several folds. It is a good opportunity for investors looking for short-term benefits.
Future Money Trends released a micro-documentary, discussing collapse of US bonds, war, and shortage of global supplies all around the world. It also reveals that the white metal and gold are expected to reach their high values in 2016. Australia, the world’s fourth largest producer of the white metal, is rich in undervalued metal. For Australian investors, silver is likely to be the best available investment for short-term future gains. In the light of aforementioned points, it is safe to bet that the white metal is the new black!