5 REASONS TO INVEST IN SILVER
Every good investor in cryptocurrencies should be familiar with the concept of hard money, and that is why we should be familiar with a market such as silver.
Well, what are those 4 reasons why invest in silver?
Let's go for it.
PRODUCTION
I will start by comparing the annual production of gold and silver: in terms of gold, this is 3000 tons per year, while its world reserves make a total of 169000. Of this data, also taking into account that gold is at a peak of historical production, gives us the fact that we will be without gold in about 60 years.
If we go to silver, we have an annual production of 39,000 million tons. All this, for reserves of almost 600,000 million, which gives us money for some 15 years before its exhaustion.
To this, we must add that no new ore reserves will be discovered, since today's mines are active because they extract other metals such as zinc, molybdenum, copper and manganese, being those that are dedicated exclusively to the extraction of minerals. silver only one third of the totals.
PRICE
Why the price of silver is so low? If the reserves are so scarce, it does not make sense. The price of an ounce of gold is about $ 1300, while the price of silver flirts with $ 15. consider the scarcity factor, this situation should not make sense. But it is not the only one among the factors.
It must also be borne in mind, that its production costs are very low: while gold has to be deepened more and more to extract it, silver is in easy conditions to obtain, which means that, counting the low production costs, the mining companies do not think about it when overexploiting the ore.
INDUSTRIAL DEMAND
Font:https://www.oroyfinanzas.com/2012/11/precio-plata-cotizacion-demanda-energia-solar/
This fact, taking into account the scarce reserves, will only deepen its depletion. In addition to the future shortage of supply, the industrial demand for this metal is shooting up, since it is one of the key elements in, for example , the still emerging sector of renewable energies.
ECONOMIC CRISIS
Another factor to assess, is the proximity of a new economic crisis, with more powerful security than 2008, a catalyst that can trigger this metal to levels not seen before.
If the previous recession made the silver reach $ 50, factors such as increasing scarcity, its use in new industries and the gravity of the situation, could make it touch the $ 100. There are some adventurers who predict even more, but I believe that a multiplication of the price almost 7 times is superfluous.
PROTECTION AGAINST INFLATION
Source: https: //steemkr.com/spanish/@sony-albornoz/tiempos-de-hiperinflacion-y-algunas-recomendaciones
Apart from a standard economic crisis, there are few doomsayers who forecast a world currency crisis. This fact could make you lose faith in institutional economic agents, such as banks, states and large companies listed on the stock market. of assets without counterparty risk, such as gold, silver and cryptocurrencies, can be a refuge for savers to protect themselves from the eventual disappearance of their assets.
And here's the article for today. If you want to add something leave it in the comments. Even another!