In fact, the year may also mean slower growth in industrial demand (with a forecast of 6 percent), jewelry (11 percent) and silverware (23 percent). On Tuesday, he told CNBC that silver had benefited from investment demand during the pandemic and that it was likely to continue to do so. Higher industrial demand will support the market, but any major upturn in the price of silver has historically come from a single source, where demand fluctuates the most. As many analysts point out, silver is known to surpass its sister metal, gold, in times of economic prosperity and expansion.
Leigh Goehring, from Goehring %26 Rozencwajg Associates, insists on the long-term price of silver, based on the relationship. The most important action you can do right now is to learn more about how silver can protect your wealth. There are also silver-exchange traded funds that offer extensive exposure to silver companies and to the metal itself, while more experienced traders may be interested in silver futures. These are the most common ways to invest in silver, from owning ingots to buying shares in companies involved in silver production.
However, gold has a history of good results once the Federal Reserve begins a cycle of rising rates and silver follows gold. Real interest rates and a change in the allocations of household wealth and savings to gold and silver. Some investors choose silver to cover their other shares, while others see it as a store of value that helps in times of uncertainty. Silver is, of course, the more volatile of the two precious metals, but it is nevertheless often traded in relation to gold.
But Ole Hanson, director of commodity strategy at Saxo Bank, told CNBC that while about 50% of the demand for silver was industrial, the rest came from investors. Although Neumeyer believes that we must break the ties between silver and gold, the reality is that most of the same factors that shape the price of gold also move silver. For its part, Tiggre believes that current market circumstances are conducive to silver surpassing gold and perhaps reaching triple-digit levels. If you want to further diversify your portfolio, silver may be a good investment as part of a larger basket of commodities.