This title will make you to think that this idea seems crazy !!!
Most of Successful stories started with crazy ideas !!!
In this Blog, we are going to discuss about the overall view of silver about Demand's,Supply's & Price in upcoming years.
At this end of the blog,Everyone will gets a clarity about the "Forecast of Silver'' like our previous blog about Gold. How silver is consumed globally ?
In layman's view, Everyone seems silver only as a jewel component.In actual terms,One third of silver is only used in jewel industry.
Then where and how rest of silver is consumed ???
50% of Silver is consumed in Industrial side as a raw material & a sub-products for Industrial applicationaized products.
30% of Silver is consumed in jewel industry to fabricate jewel ornaments.
20% of Silver is seemed as a type of investment by Global investors in the form of Silver Bullion Coins & Silver Bars.
Silver Demand (vs) Supply in Industrial Sectors
Most of silver used as a raw material in manufacturing of ''Photovoltalic Solar Panels & Brazzing Alloys".
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Source: Silver Institute
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As per Fobe's Survey 2020, Demand for silver in industrial side is increasing year by year since 2018.Worldwide Solar energy market value is expected to rise from $53 billions to $ 223 billions in next 6 years.
If the market of Solar energy is get increased as per Fobe's.
Demand for silver will also get increased in indusrial sector to fabricate photovoltalic solar panels in upcoming years.
If Demands of silver get risied in future, Supply for that demand is in the hands of mines producing silver.
As per World Silver Survey conducted by Silver institute, indicates that in 2019 the silver market experienced an overall global silver supply increase despite a 1 percent decrease in mine production. In 2020, mine production is expected to fall 5 percent to 797 million ounces, while overall global silver supply is projected to drop by 4 percent to 978 million ounces. That would be the lowest level in global silver supply since 2009.
As per Demand & Supply of Silver in industrial side, Supply will be less compare to the Demand.So,it seems that the demand power will tends to increase the price of the silver in future.!!!
Silver Demand (vs) Supply in Investment side
During global crisis & economical crisis, Investors use Gold & Silver as a hedging tool for their investments.
But,nowadays some investors are active in gold and silver market for long term as an investment because of demand of gold and silver in recent years.
Compare to gold market, Silver market is considered as a tiny market by investors because of rate and supply.
According to Mike Maloney,Founder of GoldSilver.Com, He says "Silver outperforms compare to gold in major economic crisis".He also mentions that ''there’s only a few times in history where silver has been this undervalued"
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Source: GoldSilver.com
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Why Silver outperforms gold in Bull Metal Market ?
As we mentioned above, the silver market is seems as a tiny market by investors,compare with gold market.
According to
Credit Suisse,
in end of 2019 there was $230 trillion of wealth around the world. By comparison, the value of all known investment grade silver (coins and bars) is a mere $63 billion (3.5 billion ounces X $18 silver).In other words, the amount of global wealth is 3,650 times bigger than all the investment silver available everywhere in the world!
Of course all the investment will not pumped in silver market,but according to Silver Institute forecast,they mentions that ''The weight of institutional money flowing into a relatively small market should prove sufficient for silver to outperform gold".
So,This was the reason that Silver outperforms gold in Bull metal market.
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Source: SilverInstitute
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Investors prefer more Physical investments compare to ETF's.
Bullion Silver Coins & Silver Bars are the form of Physical silver investments.
According to Silver Institute Forecast, Investments in silver is increased 16% this year.in terms of Bullion Silver coins & SilverBars.
This is a Sales chart of Silver coins of Perth Mint.
This indicates the surgeing in sales of silver coins to all time high compare to previous years.
So,its also confirms, Physical form of silver is considered as alternative investment by investors.
And it also indicates global investors started to entered in silver market in physical form.
Silver Price Forecast for next 5 years:
As per Industrial Demand (vs) Supply Analysis, We came to know that due to less supply and High demand, the price will surge up in upcoming years.
As per our technical analysis in Forex Spot Silver Price, We suspect it reach $70 per troy ounce in next few years.
Which means in conversion term, 1 gram of silver will have chance to surge Rs.160 to Rs.170 in next few years.
Conclusion:
We concluding that people who all intrested in long term investment means (5 years and above) can invest in physical silver coins and silver bars in current price of Rs.52 Per Gram. Definitely, there is a chance of getting return 3 times of your investment in next few years..
With Regards,
K.S.Muthuramalingam,
(NSE Certified Capital Market Professional)
7639927298 & bullishmuthu@gmail.com
