It's Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand.
Well, a potentially very profitable twist on that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame.
But the exciting opportunity for investors is that precious metals, like silver, are among the only assets that can seeĀ higherĀ demand when prices rise. It's just not what normally happens in "regular" markets.
But, to be fair, silver (and gold) are anything but normal markets.
Silver supplies risk falling short of demand for some time to come.Ā In mid-December 2017, I said silver would likely tack on steady double-digit gains before entering a "Tulip Mania"-style profit frenzy.
I think these charts confirm my suspicions. It's likely we're in the early innings of spiraling silver prices as more and more investors decide they simply can't let this bull leave them behind...
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.
im new here and would like to trade but never have,can you show me where to go to invest please,thank you chris.harmon7@live.com,,,chris harmon
Chris,
Try the Old/New optionsxpress, Charles Schwab, or ETrade formerly "OptionsHouse". I use E-Trade. I liked Tradeking, now Ally Invest. TD Ameritrade is probably the best but trading is expensive. Just find the one you're comfortable with and, "Good Luck".
Great article. Thank you. The only thing you left out is How to physically buy Silver. That safe haven is a big deal become a member and get wholesale prices on Silver & Gold http://www.ClintsMint.com Keep up the great work Money Morning!
Clint,
Checked out that site or, "Whose site is it? Mystery Bag Graded coins! I dunno if such a good idea. Sounds like…well.
Silver jumped $.43 according to Monex. This one of the biggest moves I've seen. Alas, I bought in at $30.42 years ago. I have 300 oz in bars and 100 oz in Maple leafs at$19.72. I'm looking for a bonanza when the market falls and the elites freeze the money supply in order to kill cash, etc. How likely do you think that is?