Is silver finally ready to shine? As the gold market is now expected to consolidate around its recent highs, silver seems ready to catch up. Silver futures rose 3.4% last week to settle at $25.38 an ounce.
Historically, gold drives the momentum in a precious metals bull market, while silver follows its trajectory, though it often lags behind. However, when silver does catch up, the gains are often explosive and overtake gold.
We monitor this with something called the Gold-Silver Ratio, otherwise known as the number of ounces of silver it takes to buy one ounce of gold. When the ratio is high, it means that both metals are undervalued, particularly silver, but the ratio begins to narrow as both metals rise. While the Gold-Silver Ratio has come down from recent highs as gold spot prices hit new all-time records while silver continued to trade in a relatively narrow range, silver is once more starting to narrow the gap.
However, the Gold-Silver Ratio is currently still quite high, which indicates that both gold and silver have plenty of room to run before this bull market is over. While gold is reaching new records regularly now, silver still has not tapped the previous record of $50 an ounce that it reached during the previous bull market. Silver is still dramatically undervalued, which means that there is also a real buying opportunity for silver investors.
More big moves are coming in silver over the next few years, if key metrics are to be believed. The Silver Institute is forecasting that investors will see silver spot prices reach $30 per ounce in 2024 as a record 1.2 billion ounces in demand are projected for the year. Drivers for demand, particularly on the industrial and manufacturing side, are expected to increase drastically over the next decade, while silver supply is set to diminish for the third consecutive year. The combination of dwindling supply and rising demand may send silver skyward over the next few years, so the time to act is now!
To help you take advantage of the current market situation, we're offering another way to add silver to your holdings. Give us a call at 1-800-831-0007 or email us to place your order today!
1 oz. Silver Canadian Maple Leaf (Backdated)
As low as $2.49 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. Price of $2.99 over spot per ounce available for purchases of less than 499 oz. Price of $2.49 over spot per ounce available for purchases of 500 oz. or more. Shipping, handling, and insurance are included on any purchase of 500 oz. of silver or more. Date selection is random and dealer's choice. Offer expires Friday March 22, 2024, or while supplies last.