Please explain Silver to me
I broadly understand why I should and shouldn't invest in Gold and I know what the performance will be for 2026 (Certified time-traveller).
But...I know nothing about silver, why I should/not buy it or what the performance will be like in 2026 (I only had time to look at Gold prices before going back in the DeLorean so Doc wouldn't get suspicious).
If you know better than me on Silver feel free to share. (Bonus points if you focus on 2026 performance/ market dynamics). Also pointers to resources to learn more about Silver would be appreciated.
NB: I just want info on Silver because it is a big gap in my knowledge (not why S&P 500/ Gold/ dogecoin is a better investment)
Based on the most helpful WSO content, here's what you need to know about silver:
Why Invest in Silver?
Why Not Invest in Silver?
Market Dynamics for 2026
While there is no specific data in the WSO dataset about silver's performance in 2026, here are some factors that could influence its market dynamics: 1. Inflation and Monetary Policy: If inflation persists or central banks maintain loose monetary policies, silver could benefit as a hedge. 2. Industrial Growth: The ongoing push for renewable energy and advancements in technology could increase demand for silver, especially in solar panels and electronics. 3. Geopolitical Uncertainty: Any major geopolitical events or economic crises could drive investors toward silver as a safe haven. 4. Gold-Silver Ratio: Historically, the gold-silver ratio (the amount of silver it takes to buy one ounce of gold) can indicate whether silver is undervalued or overvalued relative to gold. A high ratio might suggest silver has more room to appreciate.
Resources to Learn More About Silver
If you're looking to fill the gap in your knowledge, these resources and insights should give you a solid foundation to understand silver's role in the market and its potential performance in 2026.
Sources: January 2016 Data Update 8: Pricing, with an end of month update, The Scrooge Rally | The Daily Peel | 12/27/22, What's your Top Stock Pick for 2017, Goldman calls of 2016, What's your Top Stock Pick for 2017
Silver just lags behind gold in terms of rare metal pricing. It's more useful because it's used in solar and EVs, but people aren't buying because of that. People are buying for speculative purposes. And as it stands, silver is strongly in the bubble territory
When you say speculation I assume you mean institutional investors?
Idk, but i thought the market cap was too big for retail investors to cause a bubble in it. I just read that somewhere though
Genuine question, but i know it probably reads as really silly if you know your stuff.
Seperate q: do you think Gold is in bubble territory?
Speculation could mean anyone with capital. Retail, institutions, hedge funds. People are speculating the prices will continue to rise. However, that's just causing the spike in prices. Most of the base of silver prices are based on hedging. Imagine it like this: 80% of silver buyers are buying solely to hedge risks. This could be central banks, pension funds, asset managers. Anyone who wants to hedge against the dollar and the risk of inflation. 20% are speculators. But those 20% will drive the price's rapid inflation, because speculators buying causes more speculators to buy, in a risk of FOMO
Precious metals are a bit different because people who don't buy stocks do buy metals. You know that one dude who's constantly talking about "the system" yeah, he's bidding the prices up. But retail is only one player in it. They're the ones buying at the peak, sure, but they're not the only people bidding silver prices up.
Been in bubble territory for a while, but gold is weird because it's one asset that has literally zero value past what other people will pay for it.
Thanks for the detailed reply, I appreciate it.
Silver is really bubbly, haven't bought any since 2018 and have never bought in any real capacity. I haven't bought gold in a long time either, but I used to get 1oz or so of silver every time I made a gold purchase.
Who’s buying, selling and shorting
Chime in
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