However, demand for silver, especially the demand for jewelry among major consumers in India and China, declined as sales of jewelry in stores fell, due to the closure of several stores following the COVID-19 outbreaks. The actions of the United States Federal Reserve and the Chinese government greatly influence the commodity and should be closely monitored to determine possible price trajectories. It has been debatable whether to classify the movement of silver as a “bubble” (as seen when comparing silver with gold), since Peter Schiff denies that a bubble ever existed and states that the factors that led to the increase in the price of silver have not yet been resolved. Despite the saving of metals, which has already reduced the silver content in photovoltaic cells by 80% over the past decade, demand is expected to grow over the next five years.
The price of silver is notoriously volatile compared to that of gold because the market is smaller, the market is less liquid and the fluctuations in demand between industrial and value storage uses. The enormous amount of silver available has not been met with the increase in demand, which has kept prices low. Silver is, of course, the more volatile of the two precious metals, but it is nevertheless often traded in relation to gold. In addition to investor confidence, the trend in the price of silver has been supported by its increasing use in industrial environments, which account for approximately half of the annual demand for the metal.
And of course, for those who prefer a more tangible investment, buying physical silver ingots in the form of ingots and coins is also an option. Digital gold coin providers and Internet bullion exchanges, such as OneGold, BullionVault or GoldMoney, offer silver as an alternative to gold. Publicly-traded silver products represent a quick and easy way for an investor to expose themselves to the price of silver, without the inconvenience of storing physical bars. Although Neumeyer believes that we must break the ties between silver and gold, the reality is that most of the same factors that shape the price of gold also move silver.
Neumeyer expects a triple-digit price of silver, partly because he believes that the current market cycle compares with that of the year 2000, when investors were on the edge of the dotcom bubble and the mining sector was on the downside. Silver bars of various sizes are 1, 10, 100 and 1000 troy ounces, 100 grams (3,215 troy ounces) and one kilogram (32.15 troy ounces), as well as other sizes. We recommend that you always do your own research and consider the latest news on the price of silver, market trends, technical and fundamental analysis, and expert opinions before making any investment decision. On the other hand, during economic uncertainty, silver values are affected by the decline in manufacturing demand.