The white metal has been in usage since ages because of its excellent heat and electrical conductivity levels. Silver is mainly used in Electronic products these days. Apart from that, it is also used in Jewellery, other decorative etc.

Many people believe silver prices are set to rise worldwide. Here are the Real Reasons why they think like that:

FED PRINTING MORE MONEY AND STIMULUS PACKAGE

The Federal Reserve System, Central Banking System of America, has last year printed a fifth of All the Money Printed since the inception of Dollars. The Currency in Circulation last year was around $1.8 Trillion, which is now more than $2.1 Trillion, a rapid rise of 16.67%

Below is the Chart of Currency in Circulation over the last 20 Years.

$1.9 T PACKAGE

The newly elected United States President has got sanctioned a stimulus package of $1.9 Trillion. The bill is supposed to help unemployed people during the Time of Corona Virus Disease.

HIGH INFLATION

When all the central government first introduced their first stimulus package during Corona Virus Disease, money found its safe haven in Gold, where the gold prices sky rocketed almost 35% in just 4-6 months.

The money thereafter went after bluechip stocks, and then whole stock market went up and doubled from the lows made in March, 2020.

The new Stimulus package announced by Biden Government with unlocking of the economy and the countries will result into higher spending. The higher spending will result into higher inflation.

The food inflation and overall CPI has went up rapidly, but still at comfortable levels.

The very recent high inflated commodity is crude oil; Crude oil is now at $67 a barrel and trading at highs of Pre-Covid Crisis.

INDUSTRIAL USAGE

The major initiative or policy decision by Biden Government is promotion of Green Technology. These green Technologies need more silver and demand of silver will keep rising till his presidency – 2025.

The major usage of Silver is in solar panel production; with the rising demand of solar panel, silver usage will also rise.

Another major use of silver is in Automotive Industry and the interesting fact is that Electric Vehicle uses double amount of silver than traditional kind of Vehicles.

RISING DEMAND AND LOW SUPPLY

As we have said earlier, the white metal demand is set to rise, but the catch here is that, the supply is not supposed to rise in near future. The New silver supply is in decline mode since 2015 (see figures below). So the rising demand and lower or at par supply will support the price to go up; here are the figures of Silver Demand and Supply in Million Ounces from 2011 to 2020.

INVESTMENT DEMAND:

The fed printing more money is eventually coming to the system, the stimulus will boost savings and investment, and the demand supply gap of Silver is attracting investors’ attention. The rise in price with volumes of Silver trading in recent times showing it clearly, though the recent rise is said to be invoked by reddit users.

Here is the 20 year Chart of Silver Price per Ounce, the Price is giving an Eight year long price consolidation Breakout.

But the price has been cooled off a little bit when we are posting the Blog, but still above the Breakout Levels.

The experts of Commodity and Bullions are predicting at least a move upto the previous all time high of silver – i.e. roughly to $50. And in the Bull case, it can go to $88.

To the investors, we are saying, buy the * dip.