Will Coronavirus Propel Silver Higher?
(6 min read)
In my recent series on gold, I provided an investment framework and valuation methodology based on the opportunity cost and demand function for gold as a form of insurance against the risks inherent in financial assets. Here, I extend this methodology to silver but also incorporate several other important factors specific to gold’s sister. In brief, the outlook for silver is strongly positive at present both vis-à-vis gold and base metals, and versus financial assets. One surprising reason could be the recent global COVID-19 scare.
A Brief Monetary History of Silver
Silver has a long monetary history, at least as long as gold’s and spread just as broadly around the world. Indeed, in some Asian languages, the words for ‘money’ and ‘silver’ share etymological roots. And silver has been more frequently circulated as coinage, whereas gold has often been hoarded by the wealthy, or by religious orders, for use in ceremonial art or for storing unusually large amounts of wealth in bullion form.
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