In the last few weeks we’ve seen most gold and silver dealers with ‘out of stock’ signs on their storefront. That’s what the vast majority of silver bullion consumers have been getting since the end of January. Stories have been surfacing online about Silver bullion dealers seeing a rise in demand, one of the biggest they’ve seen in their lifetime. Everyone is buying, and no one is selling the physical metal in the United States. Bullion Dealers are requesting 35% premiums…and that’s if you can get your hands on some.
And yet less than a year ago when pandemic took the world by it’s grip, Gold or silver bullion dealers were nearly completely sold out within a matter of days. In some cases silver premiums reached historic highs, near 100% of spot prices. With the inception of the new #silversqueeze hype inspired by an army of retail investors on Reddit, silver has traded at an 8-year high, as demand was exploding. Silver’s given back $2 since its $29 peak on Feb. 1. But it’s still up 20% since late November, and has gained 125% since its March lows according to Kitco news. To add to that, silver stocks in the United states have been surging. It’s all related to the now infamous WallStreetBets calls to action, the latest of which targeted silver. It was enough to cause Comex to raise silver margins by 18% after just two up days. But silver’s story is still in its early days. Dramatically higher silver prices are still squarely ahead. The silver market has been largely under-owned and underinvested until 2020, when silver began its bull rally and outperformed gold. According to John Feeney from Guardian Vaults: Silver is looking more and more like the metal of the future and a substantial investment for 2021. The big driver that is here to stay is a global move into renewable energy, he said. "Under the Biden administration, we will see a lot of money getting moved into solar panel production. That is happening globally too. If you look at the solar market, the outlook for the next 5-10 years is very bullish for silver." Also, there is an argument to be made for the start of the commodity supercycle. "A lot of analysts think that we are at the beginning of it. There has been a lot of underinvestment in commodities over the last few years. A lot of capital moved into the tech sector and hardly any capital in comparison moved into the commodities sector," Feeney said. Gold and silver as a whole are considered safe haven assets - an investment that’s expected to hold their value during market turbulence. However people are often skeptical about whether to invest in gold or silver! They often think of investing in these metals as a long term yet reliable opportunity. So today we're going to break down in depth: how much gold and silver will be worth if the U.S Dollar collapses? Is it wise to invest in gold and silver or are there other options? Considering gold and Silver is considered are considered safe haven assets as we’ve mentioned above, that makes it a likely choice for investors during political and economic upheavals because they have intrinsic value, carry no credit risk, and cannot be inflated. That’s why either gold or silver, investing in precious metals is one of the best types of investments you can make in 2021. Owning just a small percentage of precious metals diversifies your portfolio, and therefore reduces volatility and risks. It can also protect your future buying power. Even in today’s cryptocurrency dominated world of investing, gold and silver hold a prominent place in the stock market. To briefly summarize this article, I firmly believe silver and gold both are good resources for future investments and something you should own even when the U.S dollar collapses.
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