SPC Premium Dossier: Riding the Silver Bull: Two Top Stocks and the Best “Wealth Builder” Strategies
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It’s a bedrock of the “Econ 101” Rules of Investing.
Call it the “Good/Better/Best” investment case for a financial asset … be it stocks … or crypto … or commodities.
Good: Demand rises while supply holds steady. The impact: Prices rise.
Better: Demand holds steady while supplies plummet: The impact: Prices rise.
Best: Demand increases, while supplies plummet. The impact: Prices rise … and keep rising … especially if this is a sustained situation.
We’re about to see a “de facto” variation of Scenario No. 3 … with silver.
Financial and geopolitical uncertainty are surging on a worldwide basis. Inflation is top of mind – because of the cumulative price increases that have hammered us over the past four years … as wages lagged.
That sparks fear … and the desire for foundational support. That sparks demand on the investment side.
Then there’s industrial demand. New technologies like solar and artificial intelligence (AI) are fueling demand, too. Global silver demand is projected to hit 1.2 billion ounces this year – which would be just below the all-time record.
Let’s now turn to supply. This is a bit more nuanced, but here we’re going to feel the squeeze. Silver mine output fell by 1% to 830.5 million ounces last year. And ore quality is falling in many places.
The bottom line: We’re looking at a version of Scenario No. 3: According to the Silver Institute, the trade group that serves as the industry’s voice. As demand advances, the silver “deficit” is expected to surge to 17% – the fourth year in a row for a shortfall.
To truly “bottom line” this – and to find ways for regular folks to profit - I turned to Peter Krauth, a friend, author and former colleague who now runs the Silver Stock Investor, an investment publication focused exclusively on the “common man’s precious metal.”
During an hour-long interview in early March, Peter’s silver forecast had silver hitting $30 an ounce by the end of 2024. And the potential catalysts in place could rocket it to $300 or beyond in the years to come – a scenario he detailed in his 2022 book: The Great Silver Bull.
“I’m bullish on silver – starting with this year,” Peter said during that talk.
“Over the last three years, we’ve seen structural deficits in the silver market. The total of those three years’ deficit adds up to half of an entire year’s supply. The Silver Institute is forecasting another shortage this year, and ongoing deficits for years. A lot of that is being driven by industrial demand, which hit a new record last year … and which is being fueled by new technologies like solar and AI. Finally, I expect investment demand to kick in pretty dramatically this year. My forecast is that silver will reach $30 before the end of this year. Ultimately, I see a ‘mania phase’ that could take silver to as much as $300 an ounce.”
This is the silver dossier you can access 24/7 as a part of your SPC Premium membership: Riding the Silver Bull: Two Top Stocks and the Best “Wealth Builder” Strategies.