Silver is easily my favorite hard asset. I consider “hard assets” as a tangible and liquid good meaning you can physically hold and exchange it for cash or other goods relatively easily. Silver is not just a precious metal as its rarity, physicality and well shininess makes it desirable by itself; but it is also an industrial metal. Silver is now used in many technological products such as electronics, computers and even photography. In addition, silver is critical in electric car batteries and solar panels which are seeing much higher demand. Silver is a bit easier to acquire than gold as it’s easier to mine and is much cheaper but I feel that it is too cheap.

If you look at the current ratio of gold to silver we are sitting an a serious long-term low. At the same time, the gold to Dow Jones Industrial ratio is also sitting at decent lows. Assuming a regular turn in the market cycle, gold will eventually outpace stocks and coincidently silver will outpace gold. Arguably, we are at the very beginning of a commodity super cycle. So much money was made in the decade long stock bull run and all that wealth has to go somewhere as stocks level off and potentially correct to fair value. Times of uncertainty and recessions will typically drive bull runs in metals. The inevitable recession combined with inflationary pressures will shove precious and industrial metals to new highs.

I love the physical coins and bullion as they will be the true currency of the apocalypse and they’ll be essential for killing vampires if needed. However, I can’t call my physical holdings investments as I never intend on selling them for cash. This is why mining companies are the way to go as many will outperform the spot price. A nice mix of physical coins, mining indices and junior miners will be great way to diversify and take advantage of this bull run.

Current Outlook: Silver is expected to really take off as gold settles down. There is a major supply squeeze evident in the market with a vast majority of trades being with paper contracts. The industrial demand far outweighs the physical supply so true market forces require a higher price. This market is heavily manipulated and will test investors patience. Not to mention JP Morgan and other super banks will paper trade silver into the ground while they accumulate as much physical bullion as possible. Seriously look it up, they get caught every year and just pay a minuscule fine. SEC corruption at its finest. This actually good news for us as we can accumulate at this manipulated price. Miners are aware of this as well so they will increase production and build up their reserves in preparation for explosion in the spot price.

Long-Term Outlook: Accumulate, Accumulate, Accumulate. Inflation isn’t going anywhere but the central banks will buy us more time to stock silver and mining stocks before they’ll allow a real recession. I have seen many credible individuals calling for a $50 silver spot price. Sounds fantastic but this will take decades. This particular super cycle in commodities have more to do with failing currencies. Regardless of the actual price, hard assets are perfect for inflationary periods. All recommendations are a long-term hold.