+49 30 6521 24928 (GER / ENG) support@bar9.com

Analyst Outlines how Silver is a Seriously Undervalued Asset Right now

JP Buntinx
April 4, 2020

There are very interesting times for most financial markets. In terms of both gold and silver, production is slowly grinding to a halt. This leads some industry experts to believe that silver is a highly undervalued asset, which is pretty interesting in its own regard.

The Short-term Future of Gold and Silver

In theory, nothing prevents both gold and silver prices to skyrocket in the near future. A lot of aspects of the precious metal industry are in favor of a price surge as of right now. Just because of these developments taking place doesn’t necessarily mean that will be the outcome whatsoever. Markets remain very finicky right now, and there is little to no immediate improvement in sight.

Factors working in favor of both gold and silver include the coronavirus pandemic and how various mines have been shut down. The lower production of precious metals is usually bullish for the market price. At the same time, global demand for both precious metals has decreased significantly, Because of this factor, it seems unlikely that anything major will happen in the short-term.

Another beneficial development is how the silver and gold price volatility has almost died down completely. That in itself is pretty interesting to keep an eye on. The negative pressure has been subdued for the most part, but there is no real bullish surge either.  For long-term investors, that may not necessarily be something to be concerned about right now.

Everything comes down to how things will evolve over the coming months. If the demand will pick up again, and the supply remains very limited, things may begin to shift in a few months from now. Until that happens, a bit of a status quo seems to be the most plausible outcome. Those looking for a quick profit may want to look at other markets, however.

Is Silver Really Undervalued?

One interesting comment has been shared by analyst Steve St. Angelo. He expects things to turn around for all precious metals, yet specifically hints at silver as a go-to asset. He expects investors will prioritize financial security over anything else while the coronavirus crisis remains in place. 

When that happens, it remains to be seen how much gold and silver there is to go around. With current prices, the easily accessible reserves can be scooped up in a heartbeat, so to speak. 

St. Angelo expects a “financial storm” to take place throughout Q2 and Q3 of 2020. Such a situation would certainly be interesting to witness, albeit no one really knows if and when that will happen exactly. Only time will tell if more investors will flock to precious metals as a result.

Considering how the silver-to-gold ratio hit 100 in favor of gold recently, one has to wonder whether silver is effectively an undervalued commodity. St. Angelo sees a bright future for this precious metal once investor interest picks up again. Gold is often considered to be a store of value, but silver may attain that level as well at some point in the future. 

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Trackbacks/Pingbacks

  1. Jesse Felder Expects the Gold Price to Break its 2011 All-time High, Bar9, The New Bank Independent Savings Account - […] capable of shaping or disrupting market trends in very quick succession. That applies as much to precious metals as…

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

What are Silver Mining Stocks and why do They Matter?

Before making any financial commitment, it is pertinent to note which types of stocks there are and what they represent. Investing blindly is never a smart idea, thus doing research is crucial.

The World’s Largest Silver Producer is Closing Domestic Mines for a Full Month

In Mexico, there will be a major change for most silver mines. Multiple locations will have to shut down their operations for at least one full month.

Silver Bug Profile: David Morgan

Morgan prefers educating the masses on how a sound financial system would work. What we have in place as of right now is the exact opposite of a sound system

Silver Bug Profile: Keith Neumeyer

Keith indicated that there would be a new bull market for all precious metals in the next few years. So far, 2020 has proven that sentiment correct, although $130 remains a lofty silver price target.

Gold Bug Profile: Bob Kirtley

Kirtley is renowned for maintaining an approach focused on planning and cost control. That expertise eventually translated to his investment strategies as well.

Silver Bug Profile: Juerg Kiener

These days, Kiener is primarily involved in management resources mandates for SAC, with a strong focus on institutional clients and wealthy individuals.

Silver Bug Profile: Adam Hamilton

Most mining operations have very mixed – and primarily disappointing – results in Q1. That has not affected the price of silver in a negative manner.

The Silverites: Advocating for Silver to Become the Unit of Money in the US

The best way to get something done in the United States is by leveraging one’s political position. The Silverites certainly explored that angle quite well.

Gold vs Negative Interest Rates

The world is teetering on the brink of a new economic policy. Not one that was written about by capitalism's founding father Adam Smith, or even John Maynard Keynes, but a giant experiment in which we will all be the subject. Negative interest rates threaten to turn...

Why is Silver so Cheap?

One often heard comment is how gold is the scarcest precious metal of them all. Silver, unfortunately, doesn’t have the same benefit, as it is far less rare.

The Silent Thief: How to Protect Savings from Inflation

How can you protect your savings from inflation? Horror stories of the prices of bread and milk spinning out of control have fixed the concept of inflation firmly in the public imagination. These hark back to the worst cases, like in the Weimar Republic where shoppers...

Logistical Issues in Argentina and Mexico can Trigger a Much Bigger Silver Shortage

Industries note stronger demand for silver than normal. An interesting turn of events, and combined with a decrease in production, anything can happen.

Fortuna Silver Mines Notes Steep Silver and Gold Production Decrease in Q1 2020

More specifically, the production of both lead and zinc has increased by 8% and 5% respectively. This is a somewhat unexpected “bonus” for this mining operation.

Gold and Silver Bounce Back as Stock Markets Continue to Struggle

Although the markets aren’t out of the woods yet, things are looking better. There is some positive momentum all around, for a change.

How do Silver Ions Kill Bacteria?

Silver has been used in wound care for decades. It is primarily used in wound dressings, as it helps clean out the wound and allow for it to recover bacteria-free.

Gold and Silver Premium Prices Spike in Singapore and Hong Kong

Obtaining physical gold isn’t the only problem. Those businesses requiring a steady supply of silver are in an even bigger pickle right now

Gold Bug Profile: Howard S. Katz

Even though Katz is rightfully called an early gold bug, it is evident that he was all too aware of how the markets evolved at any given moment.

Silver Bug Profile: Stewart Thomson

Many people keep an eye on the precious metals markets, as those segments have tremendous profit potential. Stewart Thomson can be classified as a silver bug, primarily because he expects things to head in a very promising direction.  Who is Stewart Thomson?...

Safe Payment Methods During the #Coronavirus Crisis: Cash vs Payment Cards

In this modern day and age, payment cards are very popular. In a lot of countries, cards still have to be handed from customer to cashier and back again. Handling payments in this way can in theory, result in a further spreading of COVID-19.  Utilizing this payment method is prone to the same “risks” as paying in cash.

Translate Blog Post

Article Categories

Blog Stats

  • 82,100 hits

Follow the CEO on Twitter

%d bloggers like this: