what is gold and silver on reddit

First of all, like any commodity you have supply and demand. What makes silver different from gold is the fact that silver is much more important for the industry. Gold is mainly mined for investment purposes with only 10% of the demand for gold coming from the industry. When it comes to silver, industry accounts for almost half of all demand! Plus, silver demand is growing because of industries like renewable energy and electric vehicles.

  1. When it comes to silver, there are a few things that influence the price.
  2. Silver much the same set a high of $142 in 1979 which would be $596 today – and it’s barely trading at fucking $25.
  3. In 2022, silver demand is expected to hit 1.112 billion ounces compared to a supply of only 1.092 billion ounces.
  4. Now, the most popular commodity as a store of value is gold, followed by silver.
  5. Then, we’ve got the diehard fans of silver who are seeing silver prices of $500 to $1,200 dollars, but I think the chances of this happening are pretty minimal.

Inflation is basically the decline of the purchasing power of a currency. Essentially, the same amount of money buys less of a specific good, commodity or service. Therefore, in times of high inflation, investors buy more commodities to preserve some of their purchasing power which is why these commodities are referred to as a store of value. Really, any asset that maintains its value over time can be a store of value which includes real estate, stocks, even currency when inflation is low.

Silver in 2022: Is it a good investment?

The Dow Jones index and S&P 500 has always gone up and have outperformed Silver and Gold just … While Bitcoin may be new and the hot thing, I can easily see it peaking like Gold did if it hasn’t already done so, and then just never coming back again when adjusted for inflation.

Obviously, that is not great news for silver investors and stackers, but I think that the analysts are a bit pessimistic in their price forecasts. We’ve seen that the demand for silver is going up and will continue to go up while the silver supply is shrinking. We’ve seen that there are inflationary pressures and geopolitical tensions around the world. Depending on when these cool down, I think that silver can go up to $30, even $35 dollars within the next 12 months, but it does make sense that prices will stabilise and decline after that as long as inflation cools down. Still, the current gold-to-silver-price ratio is just under 80 which means that silver is relatively cheap compared to gold right now.

In 2022, silver demand is expected to hit 1.112 billion ounces compared to a supply of only 1.092 billion ounces. It’s a small deficit of only 20 million, but it still shows that demand has started to outpace supply. In 2021, silver demand was just 1.033 billion ounces compared to a supply of 1.056 billion ounces.

what is gold and silver on reddit

What’s more, the current economic conditions are set for more volatility and even higher inflation. Banks have started to raise interest rates to stabilise inflation, but by the looks of it, it could be out of their control. The more these commodities go up, the higher costs will be for companies and the more expensive it will be to produce goods. This will put a pressure on inflation and it will likely continue to rise over the coming months.

What are the pro’s and con’s when buying Silver over Gold?

Now, the most popular commodity as a store of value is gold, followed by silver. The funny thing here is that, actually, gold and silver are not as strongly correlated to inflation as other commodities. However, they are still one of the classic picks for inflation hedging or safe-haven during volatile or bad market conditions.

Gold and silver have been around since the dawn of civilization so it’s no wonder that investors flock to them when they are worried and want some safety. That’s another reason why we have seen a big jump in their prices in recent weeks, too. Silver is the second most popular precious https://www.fx770.net/ metal after gold and one of the go-to inflation investments. When I’m looking at everything that has been happening over the last few months, it feels like it’s a good time to talk about silver again. What drives the price of silver and is silver a good investment right now?

what is gold and silver on reddit

This is one of the main reasons why investors are looking at gold and silver right now. If inflation continues to go up and exceeds expectations, silver and gold will perform extremely well. The final factor is geopolitical tensions. Anyone who has been watching the news recently will know that there are a lot of them right now. Like I said previously, gold and silver are two of the designated safe-haven assets for investors so in times of market or international turmoil, silver and gold typically go up in price.

Supply and Demand

Other analysts are more bullish and are seeing prices around $26 to $28 dollars, but they also lean towards lower prices by December 2022. Then, we’ve got the diehard fans of silver who are seeing silver prices of $500 to $1,200 dollars, but I think the chances of this happening are pretty minimal. So bubbles do exist if you take a defensive “I’m going to try to prepare for the apocalypse, stock market gonna crash, inflation bad” point of view… But in terms of the grand scheme – 20+ year time frames, investing in America seems to be immune to being a bubble. They do happen, but they are just – noise when they pop that you have to ignore.

Over the last 25 years, the ratio has typically stayed around levels of 65 to 70 so silver is looking like a good purchase right now, at least to me and I am not a financial advisor and this is not financial advice. Plus, it is important to remember that assets like silver and gold are long-term investments so you should be prepared to be patient if you are buying in. That’s exactly what we have right now. The current inflation levels around the world are record-high. The US, UK and Eurozone are hitting record inflation levels that we have last seen 30 or 40 years ago. In January, US Inflation hit 7.5%, UK inflation hit 5.5% with the Retail Price Index going up 7.8%, while the Eurozone and Canada’s inflation rates both hit 5.1%.

Bubbles. Why Bitcoin, Gold, and Silver are terrible investments.

From a long term standpoint, holistic stock market bubbles don’t matter because even Grandpa’s Dow Jones index has always gone up over the long range. Bitcoin just broke it’s ATH but it’s not looking like it has much more gas from here. Silver much the same set a high of $142 in 1979 which would be $596 today – and it’s barely trading at fucking $25. I really want a oz Gold buffalo coin and was thinking about using around 100oz of silver to trade in for it. Should I or should I just buy the coin and keep my silver? Silver is hard for me to store due to size and weight that’s why I am thinking about this.

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Just in 2020, 101 million ounces of silver was used in solar panels! Electric vehicles also require several times more silver than normal vehicles. Silver is also widely used in electronics and also during brazing and soldering. Basically, there is a constant, growing demand for silver in the industry. In fact, this has led to the first silver market deficit in 6 years!

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