The silver boom is coming it’s only a matter of time
The immense importance of silver can be attributed to its unique chemical and physical properties. No other precious metal can rival it. On the one hand, the demand for silver is increasing, while on the other hand, silver reserves are dwindling dramatically. The demand for silver is rising primarily due to industrial demand and private investment. The planet’s silver resources are almost exhausted, yet this is not yet reflected in the price.
Availability / Scarcity
As the following paragraph shows, silver is currently massively undervalued compared to gold.
In early times, the silver/gold ratio was approximately (gold: silver). This corresponded to roughly comparable production rates. Gradually, silver lost its economic importance as a means of payment. Since the end of the 18th century, gold has been considered the preferred monetary metal. Over time, the value ratio of gold to silver increased. Silver became relatively cheaper. The original value ratio temporarily fell to over and currently stands at approximately.
The reason for the temporary decline in value was the enormous production quantities that had been accumulated over decades or centuries and that flowed from states onto the world market, as silver had lost its position as a preferred/equal monetary metal.
In 1940, the world’s silver reserves were estimated to be approximately 10 billion ounces. Gold, on the other hand, existed in the world in the form of only 1 billion ounces. At that time, there was ten times more silver than gold worldwide. Over the years, however, this ratio has changed
significantly. Gold reserves have risen to their current level of 5 billion ounces, while silver reserves have decreased to approximately 1 billion ounces. The biggest difference between the two precious metals lies in their use. Silver is primarily used in industry, which has led to a steady decline in silver reserves. Gold, however, is largely viewed as an investment/financial asset and is therefore not consumed. Currently, there is five times more physical gold than silver in the world.
As previously described, silver is not available in unlimited quantities. The silver market is very small, and there is already a silver shortage, which is currently only being postponed by sales of accumulated silver from the past. Per capita silver is worth less than $5 USD (compared to $900 USD for gold). Furthermore, silver reserves (2025-2030) will be depleted sooner than gold reserves (2045).
Other advantages that will have a massive impact on the price of silver in the future:
relatively small market
Only a few silver reserves remain; they will be depleted in approximately 15-20 years.
industrial use
The poor man’s gold
The money supply is constantly increasing, and alternatives for investment are decreasing (inflation protection) By the time the population really starts to take notice of silver as an investment, it will already be too late. The silver market is so small that this immediately leads to a shortage, and you will probably no longer be able to obtain physical silver!