Got Silver Shield? 🛡

Silver used to be called the “poor man’s metal.” Not anymore. It’s market price has risen 36% in 2020 to become the best performing financial asset in the world; outpacing the Chinese bull run, tech stocks, and orange juice, which was up 25%. It even beats gold.

Gold and silver are seen as better stores of value when the US dollar is falling. The two precious metals have been climbing in recent weeks as the greenback weakens relative to the British pound (-5.7%), euro (-4.8%), and Japanese yen (-2.2%). The driving force behind that is fear of inflation.

We’ve said it again and again on Invstr Crunch; printing money is not a solution to all our problems. The US Federal Reserve can go full Weimer mode to stimulate the economy, but creating new dollar bills out of thin air will only disintegrate the value of each incremental bill.

The market predicts we’re about to exit deflation and enter ‘hyperinflation.’ You can watch it happen reading consumer price index (CPI) data and the personal consumption expenditure (PCE) index. The only real question facing investors, is which metal ETF do you buy? Gold or silver?

Gold is more popular, but that means nothing in investing. Silver is rarer, which does mean something. You can only find one investable ounce of silver for every three ounces of gold. It also has a host of technical applications, so it’s a commodity with industrial demand; gold isn’t.

The yellow metal is blessed with less volatility, and although investors pay a higher price for that, so do world governments when they sense economic turmoil in the world. It’s an asset that in most people’s minds, fits the role of ‘safe haven’ better than silver. You would normally buy both, or none at all. The Federal Reserve knows what it’s doing; shiny stones are just shiny stones!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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