Silver Outperforms Other Metals in the Precious Metal’s Rally

We have gone through three highly tumultuous years. The economy has been unstable, global politics have been fraught with insurrection, threats of war, and then there is the health crisis that has kept everyone on tenterhooks. The level of uncertainty has affected the performance of stocks and bonds. Of all the assets a person can invest in, silver and gold have been performing very well. Silver in particular has proven to be one of the best options for investment. The reason for this is that silver shares a lot of properties that make gold the best precious metal to invest in but unlike gold silver has more industrial uses.

Investors around the globe are looking for investment options beyond the usual stocks and traditional shares.

Precious metals, real estate, and cryptocurrencies have become more popular especially with the economy being in the state that it has been since 2019. Silver has attracted a lot of big-name investors like Eric Sprott, Robert Friedland, and Warren Buffet.

Let’s look at the most famous of the three investors mentioned – Warren Buffet. The oracle from Omaha as he is known has not been particularly fond of gold. His Berkshire Hathaway firm has shied away from precious metals but during the second quarter of 2020, Berkshire Hathaway bought 20.9 million shares of Barrick Gold. This means that Berkshire Hathaway would own 1.2% of Barrick Gold. The shares were worth $563.5 million. This caused the company’s stock to go up to $35.79 per share.

Barrick Gold is represented in over 13 countries and in 2019 the company generated a revenue of $9.7k Million. This was a good call for Warren Buffet’s company and it led other high-powered individuals to consider investing more in gold.

Canadian billionaire Eric Sprott went on to invest 25 million Canadian Dollars in three Canadian companies that focused on gold extraction. The shift in outlook by these reputable rich investors motivated a lot of other people to buy silver and gold. The turbulent times that spurred prices higher have not yet have not gone this means hedging is still as important as ever. Silver and gold are more relevant now than they have been.

Of the three common precious metals that people invest in, silver seems to be doing great. This metal might be cheaper than gold and platinum but the percentage rise in its market price is greater. The demand for silver is higher than the demand for gold or platinum mainly because the metal is used in a growing number of industries. There has also been a rise in the number of patents for products requiring silver. The demand for silver might turn out to be higher than its supply.

The performance of gold in the market is almost always related to the performance of silver. There has been an uptrend in the demand for this white metal over the last 26 months. There are a lot of analysts who believe that silver has been undervalued. This means that any correction of the price would create a higher buying opportunity.


Investors who buy silver now will be able to hedge their losses for other investment assets and get increased gains from silver than any other metal. Overall, the current increase in the value of silver will reward investors as the long-term shift away from fiat currencies continues.

 

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