by Staff Writer
HARARE – As the pandemic hit the global economies early last year and governments around the world began to shut everything down and the printing machines began to print ginormous amounts of money out of thin air to save their economies from total collapse, gold jumped 24%, while silver jumped nearly 50%, over double that of gold.
This is not the first time the precious metals have had a groundbreaking year. You don’t have to look any further than 2011 to see these two safe haven metals have a record-breaking year.
Unlike gold which is primarily used as a safe haven and wealth protection asset by worried investors and Central Banks alike, silver on the other hand has a duo purpose.
One purpose is to act as a hedge against inflation much like gold as investors try to save the value of their hard-earned money from irresponsible governments’ behavior whose only solution to every single crisis seems to be printing and spending more money as has been the case during every crisis in the last five decades.
The second and more essential purpose for silver is the industrial need for this rare precious metal which for nearly a century has been utilized as an efficient electronic conductor. Indeed, for many decades the tech industry has tried to find a cheaper substitute to replace silver with, and each and every time, has failed to find anything that is capable of doing what silver has done for as cheaply and efficiently as silver has been able to do. So, they keep finding themselves back in need of silver to continue to strive in their respective field.
From solar panels to electric car batteries, cellphones, cars and hundreds of other similar daily essentials, silver is an absolute necessity, without which many of these industries could not survive.
According to Statista which monitors the global silver usage, well over 75% of all above-ground silver is used annually in various tech industries. Only about 25% is purchased by investors in the form of coins and bars.
As the vaccines begin to be shipped to all countries around the world and the economies start to reopen their doors, there is an enormous pent-up demand for silver by all these industries that needs to be filled. This, on top of a growing demand by the majority of investors who feel gold is too expensive for their budget and instead try to protect their wealth against devaluation of the dollar with silver at its much lower price.
The world has taken a shift in terms of energy production, with many countries going for cleaner energy in the name of ‘Green Energy’. This has seen large banks and energy companies have since decided to reduce funding in dirty energy and embrace clean energy.
A huge part of the so-called green energy is solar panels. And as you might know every single solar panel needs silver. Wind turbines is another part of green energy also requires silver due to its longevity as an electronic conductor.
Such activities will leave silver on a bull run in this decade and prices might move from the current below US$30 to over US$50 according to some analysts polled by Reuters. It is time to take a position in the mineral than rue missed chances in the next few months.