Although the cost of silver is not usually correlated with the stock market, prices of precious metals have historically risen as stock values plunged If the stock market sees a correction, the price of silver could rise. Since gold has been used as money and as a sign of wealth for thousands of years, there is no reason to believe that its attractiveness will soon diminish. Global demand for silver is reaching all-time highs, as the precious metal is used in many emerging industries, such as renewable energy, solar energy and other major green initiatives used to combat climate change. Anyone considering buying precious metals, gold American eagles, Proof gold American eagles, certified gold coins, as well as gold and silver bars, should carefully consider and evaluate the associated risks and acquisition costs before making the investment, and should always consult their professional financial and fiscal and carefully evaluate all risks associated with the acquisition of precious metals before making the investment.
The strength of the US dollar, changes in interest rates in the United States Federal Reserve and the easing of quantitative easing by central banks are factors that will continue to affect the precious metal, as well as geopolitical issues and the dynamics of supply and demand. Matt Watson, founder of Precious Metals Commodity Management, believes that over the next decade silver will benefit greatly from increased industrial demand, particularly from the electric vehicle, solar photovoltaic and electronics industries. While the silver price outlook is affected by supply and demand, it is also heavily influenced by investors buying precious metals as safe haven assets in times of economic or political uncertainty. Russia contributes significantly to the global supply of precious metals approximately 2.6 per cent of the global supply of silver, 15.1 per cent of platinum, 9.2 per cent of gold and a staggering 45.6 per cent of the world supply of palladium.
Investors in precious metals and many other types of assets are understandably tired of the constant fluctuations of today's economy. Unlike paper money and stocks, physical precious metals, such as gold and silver, are resistant to inflation because they derive their value differently from paper money. More controversially, Neumeyer believes that white metal will eventually decouple from its sister metal, gold, and should be seen as a strategic metal because of its need in many everyday appliances, from computers to electronics and solar panels. Silver is, of course, the more volatile of the two precious metals, but, nevertheless, it is often traded in conjunction with gold.
The value of silver generally fluctuates more than gold due to the numerous industrial applications that link the white metal to the fortunes of numerous industries. This is called the gold/silver ratio, which is constantly being watched by experienced precious metals investors and traders to see where the pendulum will move next. With inflation concerns growing stronger in recent months, precious metals, especially gold, have reflected investor sentiment on inflation quite well. Platinum and palladium, as rare metals used by automakers to reduce harmful vehicle emissions, are likely to benefit from recovery in automotive demand and tighter emissions regulations, among other factors.
Therefore, one of the driving forces behind the increase in silver prices over the next five years is the numerous applications of the white metal in green technologies and the green economy. .