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Silver is Vastly Undervalued

Silver has long been undervalued and the current dip means an opportunity to obtain silver at lower prices. Silver fell another 3.9% this month after slipping 0.6% in August. 

We know that it's undervalued because of the Gold-Silver Ratio. The Gold-Silver Ratio has been signaling low silver prices for years. In addition, the past two years of deficit silver production have wiped out the surplus of above-ground silver built up over the previous decade and demand continues to surge as silver is the metal of choice for virtually every green energy initiative in development.

This is a great opportunity for those of us looking to buy silver well...

The current Gold-Silver Ratio (the number of ounces of silver it takes to purchase one ounce of gold) is currently above 80. In a typical market, a ratio at or above 80 ounces of silver to buy 1 ounce of gold indicates the bottom of gold and silver pricing, and typically gold and silver prices go much higher from there, causing the ratio to narrow as the gains of silver tend to outpace those of gold. The ratio bottoms out around 30-50 and from there the bear market begins. 

This current bull market has been anything but typical, however, with the Gold-Silver Ratio reaching an unheard of peak of 125 to 1 in the spring of 2020 as the Covid-19 pandemic dominated headlines and impacted economic policy. The ratio has stabilized over the last few years, but at current levels, this key metric is still quite high and indicates that both gold and silver are currently undervalued.

Spot prices can still go much higher than even previous bull market highs over the next few years before the long-term trend resets. Pullbacks like this are a blessing in disguise for investors who are ready to enter the precious metals markets and just looking for the right moment to strengthen their positions. Long term the fundamentals are still bullish, so temporary dips with the current trading range provide an excellent buying opportunity.

We also know that silver is undervalued because the pricing has not caught up with the high demand and dwindling supply. Experts have indicated that the growing demand for silver in technology sectors will likely create a supply shortage in the coming years. Silver demand achieved record highs in 2022, growing by 18% as both investor and industrial demand ramped up, while mining production decreased, creating deficits in the supply over the last 2 consecutive years. However, the per ounce price of silver does not yet reflect this. 

2023 is expected to be another of solid silver demand, according to The Silver Institute. Industrial fabrication should reach an all-time high, boosted by continued gains in the photovoltaic market and healthy offtake from other industrial segments. Although bar & coin demand and jewelry fabrication are expected to fall short of 2022’s exceptional levels, both are forecast to remain historically high. Supply, by contrast, is expected to achieve only low single-digit gains. As a result, this year will also see another historically high deficit for silver. Yet, nearly 3/4 of the way through 2023, we are still not seeing these fundamentals reflected in the spot price of silver. The time to act is running out.

Silver is down 0.8% so far in 2023, trading within a narrow range, but silver is known to make explosive moves, like the 48% gains in silver we saw in 2020. We don't know when silver will make it's next big move, but when it does, it will be swift.

We want to assist you with obtaining silver before prices go sky high. Give us a call at 1-800-831-0007 or email us to place your order on 1 oz. silver rounds today!




1 oz. Silver American Buffalo Rounds
As low as $1.49 over spot 


*Prices subject to change based on market fluctuation and product availability. Prices reflected are for cash, check, or bank wire. Minimum order is 100 oz. silver. Free shipping, handling, and insurance are available for silver purchases of 500 oz. or more. $1.49 over spot per ounce pricing available for orders of 500 oz. of silver or more. Orders of 499 oz. of silver or less available at $1.99 over spot per ounce. Offer expires Friday, September 29, 2023, or while supplies last.