Gold has long been one of the world’s most valuable commodities, easily surpassing silver year after year but many believe that these long accepted performance values will shift and silver will soon outperform Gold upcoming in 2017.
While gold’s value does consistently climb with minor setbacks, it is the rate at which silver is increasing overall in the 20th century that has analyst predicting a better return on the typically under appreciated metal.
Gold has a great reputation for reliability even when the precious metal has taken dives in the past few years. It’s overall considerably less volatile than silver, in part due to the large volume in which gold is traded at as opposed to silver which is usually traded in much smaller amounts. Silver can be so that the volatility can be 2 to 3 times that of gold.
The gold to silver ratio currently is stabilizing and some analysts believe the supply and demand of the precious metals will send silver surging. Gold has consistently held a 50% greater demand than supply for the past decade and doesn’t seem to be changing drastically any time soon. Silver, on the other hand, is predicted to have an increase in demand with a plummeting supply.
While the industrial fabrication market makes up about 50% of the silver demand, jewelry is also a leading consumer market of the commodity and both are expected to rise at least slightly in 2017. Silver supply has been steady in increases for the past few years but is expected to hit a deficit in 2017 with miners becoming much more conservative. Silver deficits may hit 132 million ounces in the upcoming year and with such large markets demanding the precious metal, forecasters predict this alone could send silver soaring.
The rise in the solar PV industry, especially in China also are predicted to send silver values on the rise, especially with the industry’s inability to reduce the use of silver in manufacturing. Global photographic demands should see an increase as well, which will push silver upcoming throughout 2017.
The owners of Durham Precious Metals in Bowmanville On believe that industrial demand will also be a deciding factor in the near futures. Tom explains that you can game a paper system but you cannot game the real costs of acquisition of the metal and therefore the bottom is in!
With the changes in supply and demand for silver in conjunction with the solid increasing performance of the precious metal throughout the entire 20th century, it is safe to say silver will be increasing in value in 2017. These great changes in silver in contrast to the overall unchanged supply and demand of gold could result in silver finally moving past the yellow standard in 2017. Analysts suggest keeping a close eye on the market and anticipating great change.
Personally, I am backing up the truck the next time my budget allows!