A Silver Lining

Political and cultural changes will impact almost all investment markets. Here's one that may benefit from current events.

A Silver Lining

The hive-mind of the forum investors are emboldened by their attack on the hedge funds over Gamestop. Now they have other targets in mind. One of them is silver, which has been the subject of systemic price manipulation by the investment banks for many years.

Silver is an interesting market. It is part precious metal ( known as the poor mans gold) but also has a number of industrial uses. These include in demand products like solar panels, semiconductors, wind turbines and water purification.  If you are an investor with a 'sustainability bent' then silver might have some appeal.

I've had silver coins and bullion for many years. It's always been one of those 'what if' investments but part of the appeal is the pure beauty of bullion silver coins.

After many years of being the poor relation to gold and stocks, I get the sense that silver is set to enjoy centre stage. It has a number of things going for it.

Firstly, as a precious metal it is seen as a hedge against inflation. With the fiat currency printing presses running flat out, it is only a matter of time before inflation emerges. This should be positive for all physical commodities.

We also have the industrial demand mentioned earlier. The agenda by the global socialists is focused on green energy solutions and technology. Both require silver and as production is unlikely to meet demand in the short term,  a demand led price squeeze could easily emerge.

Thirdly, we have the forum punters. They can't readily be dismissed and if they decide to target a relatively thin market like silver then large price changes could emerge.

As at the time of writing the current silver price is around USD $27. It could easily double in the next few months but over the long term it seems like a relatively low risk store of value.

Please understand this is not investment advice. Merely my observation of how the impact of current political and cultural events may affect investment markets.

UPDATE: the silver price jumped this morning to nearly $29 and is currently trading around $28

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