Gold is hovering just under $1,750 per ounce, while the price of silver has fallen significantly, losing 2.33% against the U.S. dollar over the past 24 hours. Silver has fallen more than 28% against the dollar over the past 165 days or since March 8, 2022. Despite these price declines, David Morgan, founder of The Morgan Report, believes that silver supplies are expected to tighten; in 10 years, Morgan believes that silver will be one of the best investments of the decade.
David Morgan claims that “industry alone is probably going to take all the silver
For most of 2021 and late 2022, many investors were focused on assets such as gold andbitcoin. Silver, on the other hand, has not performed as well, with both the silver spot price and silver mining stocks underperforming the S&P 500.
In February 2021, Bitcoin.com News published an anonymous Reddit forum r/wallstreetbets reported on the so-called “Silver Squeeze” that was sparked by a coterie of people. That week, silversoared to over $30 an ouncein U.S. dollar value, and many precious metals dealers said they were out of stock.
In 2022, the second week of March, an ounce of pure silvermanaged to hit a high of $26.46per ounce; on March 8, 2022, gold traded above the$2,070 per ounce level, setting a lifetime high.
Silver has lost over 28% of its value since March 8, as it is currently coasting at $19 per ounce on Saturday evening, August 20, 2022 (ET). Despite the significant losses,founder of The Morgan Report, David Morgan, believes silver supplies will tighten over the next decade.
On August 19, 2022, Morgan discussed the value of silver with Kitco News anchor and producer David Lynn. In avideopublished on Youtube on Friday, Morgan told Lynn that silver supplies could be depleted in the future. According todatacollected by the Silver Institute, global silver demand will reach 1.112 billion ounces in 2022, a record high.
“The USGS said that silver was the first element on the periodic table to be in such short supply, but that was a few years ago,” Morgan elaborated.” Industry alone will take all the silver available at some point.” Morgan elaborated.
The precious metals analyst added:
If you have a long time horizon, say 10 years or more, there is nothing better than investing in silver. Silver will shine someday: …… But it will probably have natural corners: …… A natural corner is when industry alone sucks up all the available silver and there is none left.
FX Empire strategists highlight gap in silver futures market; analysts expect “a lot of downside pressure”
In the short term, however, Christopher Lewis, precious metals analyst at fxempire.com, envisions silver falling below $18 per ounce. Lewis believes that there is agap in the silver futures marketand that the gap will be filled in the near future.
“At this point, it looks like it will fill the gap rather quickly, perhaps down to the $18.50 level. If we break below there, the $18.00 level is also important. It’s a big, round, psychologically important number and an area that has had a lot of support recently.” Lewis’Technical Analysis Report
Finally, I think this market will continue to see a lot of downside pressure. If we can get below the $18.00 level, perhaps the next big leg lower will begin. In this scenario, we could potentially see silver get completely smoked.
Morgan Declares No Silver Substitute
In an interview with Morgan, he noted that silver often comes from mining thebase metaland supplies from that sector will also shrink He stated. He said, “That’s why this has happened.
Earlier this yearthere were detailed reportsthat silver demand was expected to swell 5% this year and jewelry demandto grow 11% in 2022. However, despite macroeconomic uncertainty due to war and global inflationary pressures, silver has underperformed as a safe-haven asset.
Indeed, during the 2020 pandemic, Marcella Advisors. com’s Donald Calcagni published a scathing paper(85) that “silver is neither a consistent hedge against inflation nor a stable and reliable store of value.” The same has been said about gold this year, with researchshowing that gold has “a very low correlation with inflation.”
Bitcoin (BTC)also shows a low correlation with inflationary pressures, and in 2022,according to data, the main crypto asset has acorrelation with stocks. In an interview with Hayashi on Friday, Morgan suggested that silver will be one of the best investments of the decade.
The precious metals analyst expressed his belief that the industry will always seek silver. The silver market is still in the midst of a major shift in the market, and the industry is still looking for silver to be the best investment of the year.
In this context, “the use of silver is absolutely necessary and irreplaceable. There is no substitute.”
What are your thoughts on the significant drop in silver since March 8 and the recent 24-hour drop? What do you think about David Morgan’s opinion on the future value of silver? Let us know what you think about this subject in the comments section below.
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