Copper is a metal for industrial use, gold is a precious metal but has no industrial use, while silver is a precious metal and has industrial use, which means it has more value.
In terms of supply and demand, the demand for industrial use of silver is estimated at more than 1,000 million ounces of silver. A demand that is growing due to the digital economy and the green economy. Furthermore, the demand for silver comes from financially very powerful investors. “After Covid-19, investors have gone to the Comex, have bought futures and have waited for expiration to demand that both physical gold and silver be delivered to them. In addition, individuals have also chosen to buy silver, causing a 300% increase in its price in the last year”, says Cava.
As for the supply, it can be placed at 850 million ounces of silver. “It doesn’t even cover industrial demand. Production is now 30% from primary mines and 70% from copper-nickel alloy. The cost of obtaining each ounce of silver is increasing and will increase in the coming years”.
So why isn’t money going up? Because there are people who manipulate their price gold ira. The bullion banks have created “paper silver” and they are the ones manipulating the exchange rate because it is the price set in the paper markets that determines the price of physical silver. “This crude manipulation will disappear on January 1, 2022 because the Basel III Accord enters into force in the United Kingdom, where the bullion banks have their residence.”
Although the chart is manipulated, an approach to technical analysis can be made. Cava acknowledges that “for every 7 ounces of silver, one gold is produced. If gold is trading at $1,800, the price of silver in this ratio should be $247 per ounce and it is trading at $22. But if we already assume that gold is going to $3,000, as I estimate, we should think about more than $500 per ounce of silver.” According to this expert, gold and silver are not rising as other metals for industrial use are doing and, furthermore, they should do so due to the monetary policy of the central banks. “It is seen that they are manipulating and holding the price down. The day they can’t continue manipulating it will go up.”
The silver chart shows a whiplash to the upside and then a sideways move. It is now at the bottom of that side and “at around $21-19 it has significant support that has worked in the past. A retracement that corresponds to 0.618% of all the previous rise. With which the support will work. If silver falls, support is respected and then deploying a leg higher would probably trigger a buy signal”, concludes this expert.