While gold’s been teetering along at just under $1,750 per ounce, the price of silver has dropped considerably, sliding 2.33% in value against the U.S. dollar during the last 24 hours. In the past 165 days, silver has fallen more than 28% against a dollar. This is since March 8th 2022. David Morgan of The Morgan Report is a founder and believes there will be a shortage. In ten years’ time, Morgan thinks silver will be one of the best investments of the decade.
David Morgan Insists the ‘Industrial Side Alone Is Probably Going to Take All the Silver’
Many investors were focused on bitcoin and gold during the first half of 2021. Silver, on the other hand, has not performed as well and both silver spot prices and silver mining stocks have underperformed the S&P 500.
In February 2021, Bitcoin.com News reported on the so-called ‘silver squeeze’ sparked by anonymous cohorts on the Reddit forum r/wallstreetbets. Silver was discovered that week. soared over $30 an ounceThey were valued at USD 100 and precious metal dealers claimed they were out-of-stock.
An ounce of fine-silver managed to hit a record $26.46 an ounce in the second week March 2022. On March 8, 2022, gold’s price per ounce hit a new lifetime high as it traded above the $2,070 range.
Since March 8th, silver has experienced a 28% drop in its value. It is now trading at $19 an ounce (EST) on Saturday August 2022. David Morgan (founder of The Morgan Report) believes that there will be a shortage in silver over the next ten year despite these significant losses.
On August 19, 2022, Morgan discussed silver’s value with the anchor and producer at Kitco News David Lin. Morgan spoke to Lin in the Youtube video on Friday about the possibility of a shortage of silver. According to data collected by the Silver Institute, the world’s silver demand will hit a record 1.112 billion ounces in 2022.
“[USGS] said that silver would be the first element on the periodic table that would be in such short supply, and that was a few years back,” Morgan detailed. “Just the industrial side alone is probably going to take all the silver available at some point in time.”
According to the precious metals analyst:
If you’ve got a long time horizon, like ten years or more, I can’t think of something that would be better than a silver investment. Silver will shine at some point … but it’s probably going to take a natural corner … a natural corner is when industry alone sucks up all the silver that’s available and there isn’t any left.
FX Empire Strategist Highlights a Gap in the Silver Futures Market, Analyst Expects ‘a Lot of Downward Pressure’
However, in the short term, fxempire.com’s precious metals analyst Christopher Lewis envisions silver dipping below $18 per ounce. Lewis says there’s a gap in the silver futures market, and he believes the gap will be filled in the near future.
“At this point, it looks like we will fill the gap rather soon, perhaps down to the $18.50 level. If we break it down below there, then the $18 level is also important, as it is a large, round, psychologically significant figure, and an area where we have recently seen a lot of support.” Lewis’s technical analysis report continues:
It is clear that this market will continue to face a lot more downward pressure. I believe that if the price falls below $18.00 that would likely trigger the next big leg lower. In that scenario, it’s very possible that we could see silver get absolutely smoked.
Morgan declares that there is no silver substitute
During Morgan’s interview, he noted that silver often stems from base metal mining and said the supply will shrink from that sector as well. “Seventy percent of silver is a result of base metal mining — If that is down, and down noticeably, then that takes a great deal of silver supply off the market,” Morgan said to Lin.
Early this year, reports stated that silver demand would increase by 5% and jewelry demand would grow 11% by 2022. Although, despite macroeconomic uncertainties from the war and the world’s inflationary pressures, silver has underperformed as a safe haven asset.
In fact, during the pandemic in 2020 merceradvisors.com’s Donald Calcagni published a scathing paper on how “silver has not been a consistent hedge against inflation or a stable, reliable store of value.” The same has been said about gold this year as research shows that gold has “an extremely low correlation to inflation.”
Bitcoin (BTC), has also been low in correlation with inflationary pressures. Data from 2022 shows that the top crypto asset was correlated to stocks. Morgan spoke with Lin on Friday and suggested that silver could be the most profitable investment of the decade.
Morgan, a precious metals analyst, stated that silver will be a constant requirement in the industrial sector. “Nothing reflects light as well as silver, and nothing conducts electricity as well as silver,” Morgan stressed during the interview. “Most silver applications are absolutely essential and irreplaceable. There is no substitute.”
What do you think about silver’s significant decline since March 8 and the recent 24-hour losses? What do you think about David Morgan’s opinion about the future value of silver? Please comment below to let us know your thoughts on this topic.
Image creditShutterstock. Pixabay. Wiki Commons