Demand for Silver Outpaces Gold as Precious Metals Production Ramps up Again
The precious metals markets have always evolved in interesting ways. Human beings have always been in love with both gold and silver for centuries. These precious metals have always been used as a measure of wealth. They have been used as a hedge in an uncertain time and have held on to their intrinsic value even as the world seems to be crumbling silver and gold hold on to their value. People have trusted silver more than they have trusted anything else including their currencies and the banks they use to save their money. The biggest driver of the price of silver and gold is the demand. With silver, the demand is growing more and faster than gold.
The year 2020, was not only a good year for gold but it was also a great year for silver. A lot of analysts predicted that a lot of investors will be turning to gold and silver. Whilst most people talk about gold and it seems more dealers are looking for gold and not as many dealers looking for silver. Silver has proven to be a dark horse. It has outpaced the demand for gold and more people are looking to sell silver bullion to get through these difficult economic times. Silver pushed passed the $20 mark. A push past the $30 mark seems more plausible than ever as the factors that drive the price of gold persist.
One factor that has featured strongly in the silver market has to be demand and supply. The demand for silver has been growing and has been expected to continue to grow. This might have taken some people by surprise but it shouldn’t have. Silver is an industrial metal and once the restrictions that were put in place because of the Coronavirus were lifted, silver production started up again. The use of silver in industries like the automobile industries and in the making of photovoltaic cells that are used in making solar panels has grown. The demand for this metal may have taken a few people by surprise. The gold-silver ratio reached an unprecedented 100 but silver soon regained its momentum and soon started outpacing gold. By reclaiming its momentum, silver created some enthusiasm in the market. When looking at the bigger picture gold and silver are following the same trends. Both have overcome market volatility and have been on their way up.
For silver, the push above $30 is still in place. However, nothing comes easy in the precious metals markets. Investors are taking advantage of the reputation that silver has and even though there aren’t a lot of scrap silver buyers out there, the benefits and the need to recycle this precious metal have never been as important now as it has ever been before. Whilst there is more silver in the world than gold, the race to peak silver is closer than people would think. It will be spurred on by the growing use of silver in the world.
More people are beginning to have more faith in silver as an investment metal and those people who own silver bullion have seen a definite advantage to owning silver coins and bars as they were able to sell silver bullion for cash to get through difficult economic times. They have proven to come in handy in emergency cash situations.