It's a common assumption that gold and silver prices will fall along with the market. And if that's the case, wouldn't it be better to wait to buy them until the dust settles? But let's assume that investors are right and that their precious metals retain their value or even gain value. During a depression, is it better to keep gold or silver? In other words, which one will give you the best chance of weathering the storm? It could also increase silver requirements for manufacturing photovoltaic (PV) panels, which are mainly imported from China, analysts at Heraeus Precious Metals said in their May assessment. Silver lost 2% of its value in the past five days, as investors moved away from the precious metal and further accumulated in the USD.
Until then, this has been Mike Gleason from Money Metals Exchange, thanks for listening and Happy New Year to everyone. These precious metals are just a commodity like a bushel of wheat or a barrel of oil or, in more recent times, toilet paper and hand sanitizer. While the bank has not yet updated its forecast for the metal, its analysts are closely watching the dynamics of silver prices. Allegiance Gold is here to help educate you on the important role precious metals play in preserving your hard-earned savings.
Despite the savings in metal, which has already reduced the silver content in photovoltaic cells by 80% in the last decade, demand will grow in the next five years. On August 29, Heraeus predicted that market rigidity would decline later in the year, stating that demand for silver could likely increase following a rebound in production of polysilicon, a key component of photovoltaic cells used to collect solar energy, which could support the price of the metal. In addition to investor sentiment, the trend in silver prices has been supported by its increasing use in industrial environments, which account for about half of the annual demand for the metal. The metal has been trading around that price point for more than a week, and has recently continued to decline due to the strength of the US dollar, supported by the Federal Reserve's assertiveness in curbing inflation.
Unless you want to get into the jewelry-making game, investing your hard-earned dollars in precious metals such as gold, silver and platinum isn't the best way to use your money. When it comes to investing in precious metals, you'll spend more time worrying about the rise and fall in value on any given day rather than accumulating capital in a rental home or property or seeing growth in your 401 (k). Jeff regularly speaks at precious metals conferences, serves on the board of directors of Strategic Wealth Preservation in Grand Cayman and provides exclusive analysis and market commentary to GoldSilver clients.