Silver price lowered, but step with S&P 500
The price of silver is tied to the performance of gold in the current market environment, but on the three-year chart, the precious metal is actually keeping pace with the S&P 500.
The peak of the negative impact of the pandemic on markets in 2020 saw the price of silver soar nearly 90% before falling back to the bottom in 2021. The S&P 500 has now made its V-shaped rebound and is well beyond it on its way to nearing a 60% gain.
However, inflation in the capital markets is a constant topic of discussion, which makes investors angry about economic growth or the lack of it. Stagflation talks are now circulating that refer to an economic landscape characterized by high interest rates and low economic growth.
This could make the perfect backdrop for safe havens like silver. Should silver prices recover, this can also be an ideal hedge against inflationary pressures.
“When we have a weak economy coupled with an urge to need and consume more silver, base metal mines that produce silver as a by-product close, as well as huge demand for silver comes to the fore,” said James Anderson, CEO and Chairman of the Guanajuato Silver Company. “In this environment, it was easy to see that silver was climbing into the $ 40 range. But it’s more likely that we’ll see silver at $ 30 before it hits $ 40. I can see it reaching $ 40 by the middle of next year. “
This will give you a trouble-free silver exposure
Would you like to load the boat on silver, but don’t want to go to the trouble of storing the precious metal for safekeeping? Here is the one Sprott Physical Silver Trust (PSLV) can help.
PSLV is a closed-end trust that holds unencumbered, fully allocated London Good Delivery silver bars held in the custody of the Royal Canadian Mint. Shareholders also have the option of redeeming their Shares for physical precious metal anywhere in the world (subject to certain minimum conditions) and such redemptions will not dilute the Trust’s commitment to the remaining Shareholders. The Trust intends to invest primarily in long-term holdings of unencumbered, fully allocated physical silver bars and will not speculate on short-term changes in silver prices.
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