When investors talk about gold and silver prices making a comeback, the question usually isn’t “if,” it’s just “when.” Precious metal commodities have operated in “super-cycles” ever since the de facto end of the Bretton Woods Agreement, when the United States ended its gold standard over fears that there would be a run on U.S. gold holdings. Foreign U.S. dollar holdings were three times higher than the U.S.’s gold holdings, and many foreign holders were exchanging their dollars for gold as the dollar saw double-digit inflation.
Only a few years after the end of the gold standard when gold began to be traded freely, gold and silver entered a historic super-cycle. As inflation skyrocketed, silver prices hit $35.28 in January 1980. Inflation-adjusted, that’s $112.40 per ounce of gold. After that peak, silver generally went into decline, though there were several big opportunities to profit from silver along the way. But prices bottomed out in the early 2000s under $5, marking the start of a new super-cycle that peaked at $48.70 in April, 2011. In less than ten years, silver investors who sat on undervalued silver could have seen their investments increase tenfold.
Since then, silver has gone into a valley and remained relatively flat with daily price fluctuations. Is a new commodities super-cycle about to propel silver into uncharted territories? If so, why buy silver?
Why buy silver instead of gold?
Silver is one of the most undervalued precious metals on the market. Another gold and silver bull run on the scale of the super-cycles of the late 1970s and the 2000s could see gold prices double, but in the past, silver prices have increased by a factor of ten. If present-day silver prices increased by the same factor, you could see silver hit $160 an ounce.
What could drive silver prices in the near future?
Some are saying that there’s a perfect economic storm in place right now that could send silver through the roof. The factors that could drive up silver prices include:
- Rising interest rates, which generally see gold and silver prices increase
- Undervalued silver prices
- A stock market that’s due for a correction, and one that has already shown fragility in 2018
- High international debt
Investors who don’t want to miss the silver comeback should find out how to get silver bars online now. Buying silver bullion online is usually the most affordable way to start investing in silver. Silver bullion has lower risks than silver paper, and when you’re investing in safe haven assets, you want to minimize third-party risks. Silver dealers like Silver Gold Bull sell a variety of silver bars to the public. They offer silver bars from the Royal Canadian Mint as well as privately minted silver bars at even lower prices. You can also buy tax-advantaged RRSP silver through Silver Gold Bull. Silver is a safe haven asset and a long-term investment. Incorporating silver into your RRSP can help you grow your savings and may be one of the safest ways to beat inflation. Don’t miss out on the silver comeback – buy silver at low prices today.