While gold has been grabbing world headlines as it has set repeated price records, silver has quietly rallied to an 11-year high, shattering the $30/oz mark this month. It is one of the year’s best performing commodities and yet in relative terms, silver is cheap. It currently takes about 80 ounces of silver to buy 1 ounce of gold, compared with the 20-year average of 68.1
Silver’s story is steeped in history as the jewelry, food vessels, objets d’art, and coins of the ancients were all made from silver.
But it is also a metal with one foot firmly in modernity as a highly conductive catalyst that plays a critical role in the green revolution and the global transition to clean energy.
According to the U.S. Geological Survey, “of all the metals, pure silver has the whitest color, the highest optical reflectivity, and the highest thermal and electrical conductivity.”2
Could Silver Double or Even Triple?
Silver’s latest price forecasts range from $34-$35/oz to as high as $50/oz with some outlier predictions for a price surge of up to $100/oz based on rising industrial demand, growing supply deficits, and limited above ground stock. From 2021 to 2023, the Silver Institute estimates there was a cumulative deficit of 474 million ounces of silver, equivalent to 14,743 tons of the white metal.
According to MarketWatch
“Forecasts pointing to a fourth straight yearly deficit in global supplies and a rise in demand to its second-highest level on record raise the potential for silver prices to rally, and even roughly double before the end of 2024.”3
Supply Challenges Keep Silver Undervalued
Most experts consider silver to be grossly undervalued based upon inherent and uncorrectable supply deficits. As mentioned, silver demand has outpaced supply for the past three years, and according to commodities research group CPM, silver supply is currently in a structural decline that cannot easily be reversed.
“The main issue is the deterioration in mine production, although scrap sources are falling as well. This is important because much of the bullion you and I buy comes from newly-mined silver. Secondary sales (bullion products that have been previously bought and sold) will always have a place in the industry, but to be prepared … mine production will need to be healthy and rising. It is neither of those things.”4
It’s important to remember that silver is rarely found in its pure form and excavating silver from the earth is a complex process of extracting and sifting mineral-rich rock and sediment (ore) via open pits and deep underground mines. Silver-bearing ores like copper, lead and zinc must then be crushed, ground, separated and chemically processed to derive pure silver.
This inherently arduous, expensive, and often inefficient process will only become more taxing since most of the silver that’s easiest to mine has already been reached. So, amid the greatest demand pressure in history, silver reserves are dwindling and that should drive silver prices higher well into the foreseeable future.
Investing News recently summarized the silver supply and demand challenges as follows:
“The thinning inventories that contributed to silver’s price gains through Q1 have been driven by the white metal’s increasing demand from industrial sectors. The biggest contributing sectors have come from the energy transition, particularly the production of photovoltaics and electric vehicles.”5
The Unstoppable Solar Army
So where does silver go from here? In terms of green energy needs, demand looks elevated well into the end of the decade. Solar energy continues to boom, particularly in the U.S. The Solar Energy Industries Association predicts nothing but silver rooftops and sunshine ahead.
“The total US solar fleet is expected to quadruple over the next decade to 673 GW, as the Inflation Reduction Act provides key tax incentives and long-term certainty that will spark demand for solar and storage and accelerate the transition to renewable energy.”6
Breaking Price Barriers and Resistance Levels
Andrew Addison of Barron’s who has been charting silver’s price barriers, resistance levels and upsides for years, believes silver is ready for a dramatic breakout. “Once silver has a monthly close above $31, then my work would confirm upside projections to $45-$55.”7
He’s not alone. FX Empire recently stated that, “historically speaking, once we get above the $30 level, it [silver] is a market that tends to just take off to the upside.” And Forbes Advisor Benjamin Curry offers this advice, “It makes sense to invest in silver under certain market conditions. When supply and demand are out of balance is the right time to invest in silver.”
And with silver supply critically constrained and silver demand being inexhaustibly driven by expanding 5G networks, photovoltaics, and consumer electronics — the right time to buy appears to be right now.
AI Demand and Beyond
Global silver demand is expected to reach 1.2 billion ounces this year, the second highest level in recorded history, and there seems no end in sight for silver’s role in industry, manufacturing, renewable energy and beyond.
According to the Silver Institute’s April 2024 Newsletter, “Silver has many exciting new demand opportunities beyond its traditional applications and expanding role in the energy transition. For example, silver will become an indispensable material as artificial intelligence (AI) rises. End uses expected to incorporate silver in AI include transportation, nanotechnology, biotechnology, healthcare, consumer wearables, computing, and energy in data centers.”8
Contact Thor Metals Group at 844-944-THOR for information on Investment-Grade Silver
It is the 79th element on the Periodic Table, and it has existed for hundreds of millions of years. It was formed in the stars when giant supernovas came together in monstrously powerful collisions. 1
Gold is plentiful at the earth’s molten hot core, or what National Geographic calls a “furnace of the geothermal gradient”2 but rare in the more accessible crust of our planet. According to researchers at the University of Bristol, the gold reserves we can reach were likely the result of a “bombardment of meteorites more than 200 million years after Earth was formed.” 3
The National Mining Association charts gold’s use in culture, fashion, and adornment as far back as 4000 B.C. It cites Nubia, a gold-rich region along the Nile River in Egypt, as the first to use gold as a medium of exchange and trade in 1500 B.C.4 The rest is history, so to speak, as gold remained a store of value and payment system throughout antiquity.
Gold coinage was the centerpiece of the British financial system dating from the mid-17th century, while the international (classical) gold standard dates from 1870 to the outbreak of World War I. Great Britain officially ended the gold standard in 1931 followed by the United States in 1933, although after the Second World War, the U.S. dollar remained pegged to gold until 1973.
With this Rich History, Why Do So Few Americans own Gold?
Clearly gold has not been hiding, but it has been hidden from you. A recent Gallup poll confirms that 61% of Americans now own stock5. One in four Americans own bitcoin6 and 66% of Americans own a home,7 but how many Americans own physical gold? An LA Times op-ed estimates gold ownership in the U.S. to be between 2.5M and 25M or a paltry .75% to 7.5% of the current U.S. population. Actual gold ownership, they say, is shrouded in a long-standing “legacy of secrecy.”
“We have probably never known how many Americans owned gold. For most of America’s history, that question has either been close to irrelevant (through the 19th century, the vast majority of Americans could not afford to invest in any assets beyond those that kept them alive) or a non sequitur (from 1933 to 1975, it was not legal for Americans to own gold as an investment).”8
Part of the answer may be by design since gold is a private investment and while there are federal reporting requirements many consider gold to be an untraceable store of wealth. And while those who have it may not be talking, those who don’t have it — may not know how to get it.
Gold is universally considered to be a good long-term investment but acquiring physical gold is neither encouraged nor embraced by the financial community. Why is that?
First, many financial advisors are not familiar with the process of acquiring physical gold. Second, they’re not incentivized to sell precious metals unlike trading equities or managing a stock portfolio. And finally, for many wealth advisors, stock brokers and fiduciaries — holding gold simply falls outside of their wheelhouse. And this is a disservice to the millions of savers and retirees who could benefit from gold’s portfolio preserving qualities.
Paper Floats
Those who are not privy to gold’s enduring value are missing out on the most powerful element of its monetary appeal. While the Bretton Woods system firmly pegged the dollar to gold, soaring inflation and an impending gold run triggered “Nixon Shock” in 1971 which uncoupled the dollar from the precious metal, and created an unbacked, government issued fiat currency. Allowing the value of paper dollars to “float” and the US Treasury to continue to print, create, or digitally emulate money was a recipe for disaster from the start.
Simply stated, money printing leads to inflation and unsustainable debt. This not only weakens the buying power of currency, it undermines the value of the money you already have tucked away in the bank, a 401k, or a pension plan.
A recent warning from the Cato Institute states,
Rising US spending and debt in light of heightened political polarization and congressional budgetary gridlock raise concerns about the sustainability of government finances. The recent credit downgrade by Fitch Ratings and Moody’s Investors Service lowering its outlook on the US credit rating is a reflection of the nation’s concerning long‐term fiscal trajectory and poor fiscal governance. Without a political willingness to reduce the growth in old age benefit programs, the erosion of central bank independence to finance future spending represents a growing risk. 9
Suffice to say, holding dollars or paper money is fraught with uncertainty. This directly contrasts with the legacy of wealth, prosperity, and intrinsic value of gold.
There is no other modern investment that is embraced by central banks and the world’s leading monetary authorities to diversify reserves, protect against currency depreciation, provide a global inflation hedge, and defend monetary holdings against global conflict and civil unrest.
Tinderbox Times
Welcome to the here and now where geopolitical risk responds to gold and gold responds to geopolitical risk. For the first time in generations, war has returned to the Middle East and the European continent. Armed conflicts, trade wars, demonstrations, and political polarization now dominate the news cycle. This has increased demand for gold, particularly from the world’s central banks.
According to ING, the Dutch multinational banking and financial services corporation, central bank buying has fueled gold’s recent record-setting run and they expect that rally to continue.
“Gold has … been supported by strong central bank buying as reserve diversification and geopolitical concerns have pushed them to increase their allocation towards safe assets.”10
According to the World Gold Council, owning gold in 2024 is as compelling as ever in a world mired in volatility and calamity.
“Last year central banks placed great emphasis on gold’s value in crisis response, diversification attributes and store-of-value credentials. A few months into 2024 the world seems no less uncertain meaning those reasons for owning gold are as relevant as ever.”11
The world is clearly “no less uncertain.” As we entered the new year, The World Economic Forum cited “cracks in society” and “episodic upheaval.”12 The Carnegie Endowment for International Peace, which compiles a Global Protest Tracker, is now monitoring over 700 significant anti-government protests worldwide.13
According to Reuters, the number of American “preppers,” or those who believe in preparing for societal chaos has doubled in size since 2017 and now stands at some 20 million. And they’re a far more culturally diverse group than ever before in history. According to John Ramsey, a former Obama administration advisor, “The only real unifying denominator among preppers these days is people who are smart enough to be aware of what the world is like … and they have the gumption to do something about it.”14
With unfolding regional conflicts, intensifying wars, growing protests, political division, and increasing unrest at home and abroad, we’re in uncharted waters. And, there’s little doubt that gold is where the world turns for safety.
In Plain Sight
To many, however, gold is still a “secret investment,” a gleaming enigma shrouded in obscurity; but it is one that has been integral to the history of money and is well known to central banks, leading monetary authorities, and emerging markets like China, Poland, Turkey, and India.
According to the World Atlas, the amount of “siderophile elements” in the earth’s core could cover us “knee-deep” in gold.15 But since it’s estimated to be about 6,000 degrees, significantly hotter than the surface of the sun, any “Journey to the Center of the Earth” is solely reserved for in the world of fiction.
The fact that we can readily purchase pure gold minted coins and seamlessly transfer 99.5% pure gold into an IRS approved retirement account, seems to be a bit of a modern-day wonder. And it’s something that is very much “in plain sight” for the world’s millionaires, billionaires and overly well-to-do.
According to mining and metals analyst John McDonald,
“The world’s wealthiest rely not just on the value of this yellow metal, but also on its staying power. No matter what happens on a global scale, gold will hold its perceived worth and act as a reliably appreciating asset over the long term.” 16
Indeed, much has happened “on a global scale” throughout the course of our lives. Few of us came through the double-dip recession of the 1980’s, the fallout of the dot.com bubble, the Great Recession, or the Covid-19 shutdowns and lockdowns — unscathed.
Subsequently, millions of Americans turned to gold as a crisis hedge and a long-term store of value.
To quote French novelist, poet, and author of Journey to the Center of the Earth, “It is only when you suffer that you truly understand.”
Thor Metals Group has been helping Americans acquire gold for over 18 years, facilitating some $40 million in precious metals purchases. We want to help you protect your portfolio from the growing risks at home and abroad.
Reach out to receive our FREE GUIDE — and to set up a very “PRIVATE” consultation.
Gold, the lustrous metal that has captivated humanity for millennia, has held a mysterious allure throughout history. From ancient civilizations to modern times, gold has been revered for its rarity, beauty, and intrinsic value. Yet, despite its enduring presence, investing in gold remains a foreign concept to many individuals. This paradox begs the question: why?
The answer lies in a complex web of factors, including the deliberate obfuscation of information by the banking industry, which perceives gold as a formidable competitor.
By controlling the narrative around investing, traditional financial institutions have perpetuated a culture of ignorance regarding the benefits and mechanics of gold investment.
This has served the banking industry well as it stands to reap no profits from an individual’s investment in gold. In fact, quite the contrary. It stands to lose billions of dollars that would otherwise be deposited into their institutions and loaned out at a healthy interest rate several times over.
In this landscape of misinformation, individuals are left vulnerable to exploitative practices and miss out on the potential wealth preservation and growth offered by gold.
Enter Brandon Thor, a visionary figure in the gold industry who is spearheading a movement to disrupt this status quo. As the founder and CEO of Thor Metals Group, Brandon Thor is on a mission to democratize access to accurate information on gold investment and empower the investing public to make informed decisions.
Brandon Thor’s journey to becoming a leading authority in the gold industry is marked by his storied career in investment banking and his tenure as a precious metals industry executive. Armed with an insider’s perspective on how the industry operates, Thor recognized the need for transparency and education to combat the pervasive misinformation surrounding gold investment. Through Thor Metals Group, he aims to fill this void by providing comprehensive resources and guidance to investors at every level of expertise.
At the heart of Thor Metals Group’s mission is the belief that everyone should have the opportunity to benefit from the unique properties of gold as a store of value and hedge against economic uncertainty. Through educational initiatives, insightful analysis, and personalized support, Thor Metals Group empowers individuals to navigate the complexities of gold investment with confidence.
One of the key challenges facing prospective gold investors is the lack of accessible information and reliable guidance. The banking industry, with its vested interest in promoting traditional investment vehicles, often downplays the role of gold in a diversified portfolio. By controlling the flow of information, financial institutions maintain their dominance and discourage individuals from exploring alternative avenues such as gold.
Thor Metals Group aims to dismantle these barriers by providing unbiased insights and cutting-edge research on gold investment. Through its online platform, investors gain access to a wealth of resources, including market analysis, historical data, and expert commentary. By equipping individuals with the knowledge they need to make informed decisions, Thor Metals Group empowers them to take control of their financial future.
In addition to education, Thor Metals Group is committed to promoting ethical practices within the gold industry. Brandon Thor’s firsthand experience has exposed him to the exploitative tactics employed by some industry players, and he is determined to protect investors from falling victim to these practices. By adhering to strict ethical standards and advocating for transparency, Thor Metals Group sets a new standard for integrity in the gold industry.
In conclusion, gold may have existed for thousands of years, but its potential as an investment remains largely untapped by the masses. The banking industry’s reluctance to promote gold investment has contributed to this disparity, leaving many individuals in the dark about its benefits. Brandon Thor and Thor Metals Group are on a mission to change this narrative by providing accessible, reliable information and empowering individuals to harness the power of gold for their financial well-being. As the world continues to navigate uncertain economic waters, gold stands as a beacon of stability and security—and thanks to Thor Metals Group, more investors than ever are poised to benefit from its timeless allure.
For more information on Brandon Thor and Thor Metals Group, check out www.thormetalsgroup.com or book an appointment to talk to one of their metals experts by calling 866-801-8467.
