Silver has had a good year. With all the turmoil going on in the world, this precious metal has proven how much of a stabilizing investment it can be. The price of silver isn’t just driven by inflation and economic problems but also a growing demand for silver in industrial applications. Even Wall Street has been bullish about silver this year.
With the miserable geopolitical and macroeconomic conditions as a backdrop, more bullion dealers will be looking at investors who want something to stabilize their investment portfolios. Momentum has been building up behind the white metal and more people exposed themselves to silver in 2021 than ever before. 2022 is upon us and that also looks like it could be a great year. There is little change in the current status so precious metals like silver are expected to see prices going up.
Do you want to start investing in silver?
Not so fast. First of all, have you done your homework? This is what the experts are saying about silver in 2022.
What do you need to know?
Silver Spot-price: a beacon of stability in these uncertain times. At the time of writing, the silver spot price per ounce is $ 26.10. Six months ago, the spot price of silver was hovering around $ 25.70. Aside from a short-lived silver crunch in February 2021, which took the price to an 8-year high ($ 29.59), silver has remained stable. Its price movements from September 2020 to the following February represent a price fluctuation of over 1.5% in six months – a tumultuous year! Suffice it to say, precious metals like silver have proven to be a dependable wall against volatility for most of 2020-21, and as more countries flock to print money, investors will likely continue to seek stability in strong, limited commodities like silver bullion.
A strong dollar typically indicates a weakness for precious metals however in the past 18 months, we have seen the dollar fall and strengthen, and precious metals still managing to hold their own. After the 2020 U.S elections, the U.S dollar rebounded but the price of silver rose from $24 to $26. Silver proved to have a more bullish momentum compared to previous years. This was great news for silver bullion investors. If you went through all the things that precious market analysts were saying about silver the median price of all the estimates was just shy of $31 which is over 25%.
Right now money is extremely undervalued. The price of silver is always looked at relative to the price of gold. Geologists know that the silver/gold ratio on earth is around 17:1. This means there is 1-ounce of gold for every 17-ounces of silver. For trading purposes, the ratio was set at 15:1 however for most of the 20th century the price of gold has hovered 47 times over the price of silver. This is an indication of people’s obsession with gold. With recent concerns over the devaluation of currencies build-up of US debt and possible hyperinflation, gold and silver are set to be stabilizing assets now and into the near future.