After a less-than-stellar close to 2014, silver prices already shows signs of a strong recovery barely a week into 2015. Apart from a brief slump on the 2nd, silver has been rising steadily since the beginning of the year – despite a stronger dollar. Silver bugs can thank several key factors for such a strong start, including geopolitical tension.
According to a news report:
“(Tuesday, Jan. 6) Gold and silver futures rose to three-week high weeks after Europe’s economic concerns mounted, spurring demand for the precious metals as a haven.”
What does Europe have to be concerned about? Plenty. This time, though, the focus is on Greece once again threatening to leave the eurozone. (Read the full story on Bloomberg.)
Furthermore, the World Silver Institute expects record demand and a favorable gold-to-silver ratio to make a compelling case for silver in 2015. After evaluating the WSI’s most recent studies, Hard Assets stated:
“The use of silver in industrial applications is likely to report robust growth during the year. The use of photovoltaic cells is all set to explode, as many countries including China, Japan and Germany have committed to boost production of solar power.”
They went on to say:
“As per current gold-to-silver ratio, 75 ounces of silver are required to purchase one ounce of gold. This is quite high, when compared with historical average of 47 ounces. The current ratio suggests that silver is highly undervalued in comparison with gold.”
Read the entire article here.
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