Silver—Seven Reasons it is Still Set to Soar
The comments below are an edited and abridged synopsis of an article by Stephen Flood
The social media-induced bump in the silver price fizzled almost as quickly as it began, but silver is still set to soar. The buzz around the white metal came after social media turned to silver as the next short squeeze. The #silversqueeze meme started trending on Twitter and the story made it to the front page of major newspapers. The price shot 15% higher on Monday, February 1 to a new 8-year high before sliding back throughout the week.
Although the silver squeeze campaign has fizzled, the attention and residual retail investment demand for silver coins and bars will boost an already bullish silver price outlook. The campaign could also benefit silver by introducing Millennial and Generation Z investors, who possibly thought of gold and silver investing as old fashioned, to the markets.
Flood discusses the seven reasons that show it is silver’s time to shine (it has reached a turning point against other assets; low real interest rates; central banks will continue to fund government debts; industrial demand will increase; jewelry and silverware demand will increase; silver for sanitizing and medical purposes; and reduction in mine supply).