Could the Silver Price Really Hit US$100 per Ounce?

Like many products, larger
quantities often mean lower prices. So making less frequent purchases in larger volume
is a good way to lower your overall price per ounce (oz) or per gram (gr). However, the vast majority of futures contract buyers have no interest in taking
possession of the physical bars. To buy and sell contracts, one only
need to come up with a small fraction of the total contract price.

1. So again, if we see a continuation of the trend that we’ve seen in the last few years of real interest rates declining, we’re going to see gold and silver moving again.
2. We think that gold is nearing the end of its correction, what we’re seeing, and we look at a lot of factors and variables, we’re seeing monetary and fiscal impulses rolling over.
3. In addition, the rapid growth of consumer electronics, pharmaceuticals, refinery, and petrochemical industries in the area is driving up demand for precious metals for a variety of applications.
4. The strength of the US dollar and US Federal Reserve interest rate changes are factors that will continue to affect the precious metal, as are geopolitical issues and supply and demand dynamics.
5. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs.

Platinum is a dense, malleable metal with exceptional corrosion resistance. This combination of rarity and functionality might make platinum the most precious of the precious metals. Most precious metals are traded primarily for their use as a universally recognized store of value, but some are traded for their industrial value. These mainly include the Platinum group metals, mostly Platinum itself but also Palladium and Rhodium, among others. A futures contract is an agreement to either buy or sell a publicly traded asset in the future.

Keep in mind also that slow growth or no growth in value can be a risk in and of itself. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Funds investing in foreign and emerging markets will also generally experience greater price volatility. Diversification trade99 review does not eliminate the risk of experiencing investment losses. ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day. ALPS Distributors, Inc. is the Distributor for the Sprott Gold Miners ETF and the Sprott Junior Gold Miners ETF.

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While the fund may buy and sell physical gold or silver bars,
the shareholders, with exception for a small and select group who hold a special
designation, have absolutely no claim on the bars held by the fund. And transaction and
management fees gradually chip away at the share price which means, over time, ETF
prices fall relative to the market price of the metal held inside the fund. The precious metals surged as a consequence of Federal Reserve Quantitative Easing programs, rising inflation fears, and a spike in investment demand for physical bullion. Spot (paper) prices could diverge from real-world pricing in the markets for physical precious metals.

I think I’m not concerned about the dollar other than the short term doing anything peculiar, it’s nobody’s interest to have the dollar get too strong or much stronger than where it is now. I think in the long run, it’s in everybody’s interest, probably for the dollar to go lower, and that will be beneficial to gold. Big drivers of this is India, and actually the United States as well, where people have been scrambling to buy silver eagles this year and last year. Of course, I would love to talk about how silver benefits from the green economy and movement to electric vehicles, a greener energy, et cetera. Like I said, we are seeing increasing demand and investment demand in silver. Silver is also benefiting from the move to green energy, the move to decarbonization.

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On the other hand, during economic uncertainty silver values are impacted by declines in fabrication demand. Neumeyer’s March 2023 triple-digit silver call is a long-term call, and he explained that while he believes gold will break US$3,000 this year, he thinks silver will only reach US$30 in 2023. However, once the gold/silver ratio is that unbalanced, he believes that silver will begin to take off, https://broker-review.org/ and it will just need a catalyst. Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce. At the same time the diesel emissions scandal in Europe has also had an impact. Consumers there have been shifting away from diesel cars, which mostly use platinum in their catalytic converters, and are instead buying petrol-driven vehicles, which use palladium.

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In addition, the rapid growth of consumer electronics, pharmaceuticals, refinery, and petrochemical industries in the area is driving up demand for precious metals for a variety of applications. For investors looking to gain the long term benefits of precious metals, consider looking at Sprott and help us help you advise you on the best ways to allocate to the space. And in fact, with the inflation we’re seeing, we’re in a negative real interest rate environment. And of course, my job is to primarily to look at equities, I always start with the macroeconomic outlook because that informs the prices for the metals. Today, I’d like to speak with you about our outlook on gold and silver bullion and the underlying equities. We’ll start by looking at the recent performance of the metals.

While silver’s performance in 2023 might have seemed underwhelming, especially compared to gold’s upward trend, this is a familiar pattern to seasoned investors. This growing demand for green infrastructure, driven by government initiatives and environmental concerns, is a significant factor propelling silver’s industrial demand upward. In the current environment, we’re seeing out there in the market, this could be a real value add to the portfolio. From that perspective, and again, overlaying the investment demand side of things, we’re quite bullish on silver. On top of that, China has a water issue, which essentially China has about 20 percent of the world’s population, but only seven percent of the world’s freshwater resources, and many of those are compromised.

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There’s a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. In fact, in order for the precious metal to jump to the US$100 mark, its price would have to increase from its current value by around 350 percent. FCX stock rose as the  infrastructure bill made its way through the U.S. The rally indicated that the price of copper would climb after the bill was passed.

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“The industrial side of silver is very bullish for silver over years to come, even if the safe-haven demand for gold goes away,” he said in an interview with INN in January 2023. “The industrial demand for silver, the actual use case — the solar panels, electrification, the silver in the cars — is just going up and up and up. So I quite like silver a lot.” On a separate note, silver’s close ties to gold’s safe-haven status should be beneficial in the long term, and there is also a strong case to made for the metal’s industrial potential. According to CIBC analysts in mid-2021, higher industrial demand from emerging sectors due to factors like the transition to renewable energy will be highly supportive for the metal over the next few years.

And using a fix price makes it easy for either party to hedge. Bullion dealers, for
example, can sell inventory to a customer and buy replacement inventory from a mint
using the same fix price as the basis. Once again, they avoid worrying about the spot
market moving against them during the period between completing the sale and making the
offsetting purchase. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling.

During a financial panic or currency crisis, the masses may rediscover its monetary utility. That makes silver more promising to hold during hard times than a straight-up industrial metal. In recent years gold has traded between $1,200 and $1,900 per ounce. That’s a huge move up in nominal terms over the past century.

Important information about the Trusts, including the investment objectives and strategies, purchase options, applicable management fees, and expenses, is contained in the prospectus. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Trusts. So again, if we see a continuation of the trend that we’ve seen in the last few years of real interest rates declining, we’re going to see gold and silver moving again. And for that, I think we’ll need a change again in that perception of or expectation of tapering and interest rate hikes coming out of.

The amount of the metal produced in 2019 is forecast to be below global demand for the eighth year in a row. Precious metals are in high demand and inventory is limited. If you don’t find what you’re looking for, please check back on the next business day. The company’s second-quarter revenue and earnings fell versus the previous quarter. That broke a streak of eight consecutive quarters of sequential gains, suggesting that the demand for copper is slowing. While investors wait, they can count on an attractive dividend that has been growing for the last 20 years.