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Silver Set to Shine?

June 11th 2020 – Written by Andrew Chorley

Did you know that like Gold, Silver is often thought of a monetary unit but sometimes also an industrial metal?

Although the advent of digital cameras means the use of Silver for films and colour photos has all but disappeared but it still has many applications that make it a desired commodity. 

Therefor Silver often swings between being seen as a store of value or as a commodity to be used in industry; the result is that the price is more volatile than Gold. This is accentuated by the fact that there is actually less Silver than Gold in the World due to the fact that it is consumed in industrial uses!

However, which ever way you want to think of it Silver could become a useful part of investors portfolios. In the graph we see that Gold/Silver ratio is currently at its highest level in the last forty years at over 100.

In 2004 and 2009 when this ratio hit 80 Silver returned between 30%-40% annualised for the next three years. 

EST. 1999