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2024 is a year full of uncertainties, and nearly 2 months into the year it seems that our nation is at a pivotal time in many ways, politically and economically. Election years have historically brought an uneasy sentiment in the market with many investors looking to park their assets in low-risk investment vehicles or even “safe-haven” assets. These assets can include tangible ones like owning physical gold & silver. The political and economic uncertainty of 2024 sets the stage for an asset like physical silver to shine, due to its reputation as a safe haven, as well as its increasing industrial demand across the globe. 

The main three factors of silver demand include jewelry production, silverware fabrication, as well as a variety of industrial applications. This industrial use of silver ranges from electrification in the automotive business to green energy initiatives like growth in the solar energy sector. A report from the Silver Institute shows that 2022 was one of the single largest demand increases we ever seen with an 18% increase in demand for silver from the prior year. In terms of driving the value of silver, one must look at this increase in demand with respect to the relative change in supply. In a year where silver was experiencing this dramatic increase in use, mine output of silver actually decreased by 0.2%. Even considering an already drastic increase, silver demand is expected to increase by nearly 50% over the next decade, according to a report by Oxford Economics. 

For those who consider the market dynamics, all signs point to silver being wildly undervalued. One might find themself asking if or when this correction might happen and the answer remains unclear. However, historically it is fair to say that it always has. One simple way of tracking the value of silver is using the gold-silver ratio, currently over 87-1 (meaning it takes over 87 ounces of silver to purchase one ounce of gold). For perspective, the average ratio in the modern era has been between 40-1 & 50-1. This leaves silver prices to rebound with a vengeance. Should that be the case, those holding the metal will be glad they had the foresight and patience they did. 

All these factors ultimately show a case for the value of silver as an alternative investment, and even as an true alternative form of money. At Genesis Gold Group, we speak with thousands of investors every week, and we are busier than ever, which is generally a sign for us that the market is starting to heat up. For those looking for ways to diversify their hard earned retirement, there are also tax-advantaged methods of transferring retirement accounts like 401ks or IRA’s into physical gold & silver using a Self-Directed IRA. Having worked in this industry for over 25 years, my strongest recommendation would be to gather as much information as possible, and to speak with experts to find out if assets like gold & silver are the right fit for you.