Is Silver Becoming Worthless? Or Is This The Catalyst For The 2019 Bull Run?

Published date: 10/12/2018
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Silver prices are currently sitting close to their lowest levels in almost 3 years, down 15% to date, it has not whipped up the same levels of attention as its peers in the metal market but does this mean investors should be overlooking it? While investors could be getting too caught up looking at the macro environment while assessing silvers value, it should not be forgotten that it is actually a hybrid metal. Meaning it is part investment but also extensively used worldwide in an increasing amount of industrial applications. With the world continually edging towards sustainable energy the fact that Silver is used in solar energy and electrical applications can only mean good things for the future value of the metal. Industrial applications count for 65% of Silvers demand at the time of writing this article. 

Factors that have influenced the decline in Silver in recent months are a strong Dollar, talk of tariffs and sluggish global growth. Silver continues to underperform Gold prices but it may be setting itself up to become a leader in 2019 with many of its key drivers shifting into Bullish territory, including rising global manufacturing and industrial production. Inflationary pressures are also on the rise as evidenced by elevated inflation expectations, rising fiscal spending and a tighter labour market with rising wages.

It is possible that we may see one more big liquidation pushing Silver prices down to the $10 region, this would be a perfect opportunity to accumulate the metal with an investment horizon of one-three years, however current value will provide a great return on investment if you can't foresee a further decline before the inevitable Silver boom!

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