Are We Running Out of Silver?

Have you been dutifully stacking your silver?

Despite low trending spot prices for silver, research suggests an impending bull market due to increased demand by industry, compounded by waning global supply.

Forecasts for the first quarter of 2017 indicate minimal growth for silver. The strength of the dollar in combination with the likelihood of additional federal interest rate hikes in 2017 make a strong case for a weak first quarter in silver, but for medium-long investors, this is a great time to stack.

While current conditions look bear, the long term forecasts shows the demand for silver rising significantly due to its highly industrial nature. Breakthroughs in renewable energy, namely solar panels, have created an enormous opportunity for silver to skyrocket. You can’t truly “go green” without silver.

As the most versatile metal in the world, silver’s uses don’t stop at renewable energy and investment opportunities. Highly utilized by the electronics industry, silver is seeing a spike in demand from Chinese markets developing new technology.

Price manipulation scandals have long plagued the precious metals industry and made front page news in recent months. Suspicions that a certain bank, whose silver holdings amount to hundreds of millions of ounces, is engaging in unethical buying and selling practices could create a false market for the metal. The tactics used by banks or investors to manipulate the price of silver can cause disruption to loyal buyers of the metal.

Increased demand is only half of silver’s story for a bullish 2017 and beyond. Attention to the diminishing supply of silver is equally necessary for investors looking for a reason to buy while the market is down. Each year, the world demands more silver, while each year, the world is mining less. As the supply decreases and demand increases, buyers can expect to see a smaller gold-to-silver ratio in the market.

If you have wondered when is a good time to buy silver bullion, this is it. Always remember the number 1 rule of investing: purchase when your risk is low. If you abide by that principle, stacking your silver pile while spot price is historically low is wise.

Provident Metals 5 oz Silver BarFor an ultra low premium silver bar, ideal for stacking, check out the Provident Metals 5 oz Silver Bar– just $0.99 over spot an ounce!


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