The Silver Bull Run Is Coming—Here’s What You Need to Know

the price of gold has rallied to all-time highs 
and investors in the yellow stuff have made some   serious gains now everyone is wondering where 
investors will move these gains into next the   most obvious catch-up trade is silver that’s 
because silver has historically followed gold   and silver’s chart suggests its price is about 
to go parabolic that’s why today we’ll be doing   a deep dive into silver and telling you where 
its price could be headed next my name is Guy   stay tuned before we dive in you need to know that 
nothing in this video is financial or investment   advice this is purely educational content intended 
to help you understand the silver market now at   the time of shooting this video gold is trading 
above the key psychological resistance level of   $3,000 this is great news for gold investors but 
it’s even better news for silver investors that’s   because a gold rally has historically been 
followed by an even bigger rally in silver   although silver has also been rallying recently 
it still seems to be undervalued relative to   gold in other words it looks like silver still 
has a lot more room to rally compared with gold   this is something that can be clearly seen with 
something called the gold to silver ratio the gold   to silver ratio analyzes how many ounces of silver 
you can buy for 1 ounce of gold investors keep an   eye on this to determine whether gold is under 
or overvalued relative to silver and whether it   may be a good idea to rotate out of gold and into 
silver when the ratio is elevated this indicates   that gold is expensive relative to silver making 
silver more attractive as an investment the uh   golden rule yes pun intended that many investors 
use is the 8050 rule if the gold to silver ratio   is above 80 to1 meaning you can buy 80 ounces of 
silver for 1 oz of gold then silver is undervalued   and it’s time to switch to silver conversely if 
the ratio is below 50 to1 silver is overvalued   and it’s time to switch to gold typically a high 
gold to silver ratio isn’t sustainable for long   and silver eventually catches up to narrow the gap 
at the time of shooting the gold to silver ratio   is sitting at around 89:1 and has been steadily 
rising for some time this suggests that silver is   extremely undervalued relative to gold and that 
it could rally significantly in the near future   in fact silver could experience gains that are 
even bigger than golds in percentage terms and   that is because of its market cap for context 
it’s the market cap of an asset that ultimately   determines how much it can pump the smaller the 
market cap the easier it is to move the price   to put things into perspective gold has a market 
cap of around $20 trillion while silver has a   market cap of around $2 trillion this means that 
an investment that would move gold’s price up by   1% would theoretically cause silver’s price to 
move up by 10% notably the same is true for any   divestment the result is that silver’s price 
has been way more volatile than gold’s oh and   since we’re talking about silver why not make this 
your moment to shine hit those like and subscribe   buttons to help the channel out and turn on those 
notifications too so you don’t miss what’s coming   next now just throwing the gold to silver ratio 
at you and calling it a day wouldn’t exactly make   for a great video would it well don’t worry 
because the gold to silver ratio is just one   of many factors getting everybody excited about 
silver as it happens silver’s price isn’t just   being supported by speculative investors but also 
by silver’s ever growing demand across a number   of industries in fact industrial use cases have 
accounted for more than half of silver’s global   annual demand over the last 5 years this is 
because physical silver is incredibly versatile   for instance silver has the highest conductivity 
of any element when it comes to electricity and   heat and is also known for its sensitivity 
to light and its antibacterial properties   this makes silver invaluable for a wide range 
of industrial applications including brazing   alloys batteries data chips dentistry EV 
production 5G technology glass coatings   LED chips medicine nuclear reactors photography 
solar energy semiconductors touchscreens water   purification wood preservatives and much much 
more besides and what’s great about silver is   that even as industries become outdated they’re 
usually replaced by newer technologies that also   require silver this is why silver is described 
by some as being the quote indispensable metal   for reference there can be anywhere between 25 and 
50 g of silver in the batteries of most electric   vehicles since silver is both highly conductive 
and lightweight meanwhile there are roughly 20   gram of silver in your average solar panel thanks 
to the metal’s thermal efficiency and reflectivity   and silver is also used in medicine that’s 
because adding silver to water releases silver   ions that kill and prevent biological growth 
helping hospitals to sterilize water systems   furniture surgical equipment and so on and of 
course silver is also used in smartphones now   while there’s only a small amount of silver 
in each smartphone less than half a gram this   quickly adds up on a global scale when you 
realize that well just about everybody has   a smartphone these days i bet that’s how many of 
you are watching this video anyway the point is   that industrial demand for silver is only going 
to continue growing now this could go a long way   towards supporting silver’s price providing a bit 
of resilience against any downwards price [Music] be music to many an ear there is an elephant in 
the room that we need to address silver’s previous   all-time high was set way back in January 1980 
when it hit a price of $49.95 per ounce and while   silver’s chart does look promising there’s still 
a long way to go before it breaks through this   level the reason why silver’s price spiked back in 
the day is actually pretty interesting so to keep   things short and sweet three billionaire siblings 
known as the Hunt brothers worked together to   pump the price of silver it’s believed that they 
accumulated over 100 million ounces of the stuff   then roughly a third of the world’s privately held 
supply this caused silver to rally from $6 per   ounce to almost $50 per ounce needless to say 
plenty of other investors caught on going allin on   silver in the hopes of making gains of their own 
however many including the US government saw this   as a clear attempt to manipulate the silver market 
so Uncle Sam stepped in the commodity exchange or   COMX placed heavy restrictions on new purchases of 
silver which led to a rapid decline in its price   this created panic among investors driving prices 
down even further silver’s price collapse was so   devastating for the markets that it actually has 
its own name Silver Thursday but of course all   this was decades ago specifically from January 
1980 until the 27th of March 1980 which was when   silver Thursday happened there was one other 
time when silver went parabolic however and   even came extremely close to its previous all-time 
high this was in April 2011 when silver reached   $47.94 per ounce so then what caused it to pump 
that time well the short answer is investor demand   in 2011 the Federal Reserve had committed to 
maintaining a zero interest rate policy for   another 2 years which basically signaled that the 
Fed was easing monetary policy naturally this also   meant that inflation was right around the corner 
so people flocked to assets like silver to hedge   against these measures to make matters worse the 
US government then began debating its debt ceiling   which caused Standard and Pors to downgrade Uncle 
Sam’s credit rating this downgrade raised serious   concerns about the stability of the US dollar 
making precious metals much more appealing as safe   haven assets since that rally subsided though 
silver’s price has stayed relatively stable   assuming you don’t count the leg up caused by the 
pandemic however silver’s price has been slowly   creeping up since Q1 of last year and we believe 
it could be perfectly positioned to explode   higher so then how high could Silver’s price 
realistically go in 2025 to determine that let’s   take a look at what some of the experts have been 
saying and work out our own reasonable target from   that so on the lower end we have City Bank which 
predicts that silver will reach just $35 per ounce   in 2025 this forecast is also matched by Morgan 
Stanley meanwhile UBS is slightly more optimistic   giving a silver price forecast between $36 and $38 
per ounce so presumably $37 is what they see as a   reasonable target goldman Sachs also predicts that 
silver will reach $37 per ounce in 2025 elsewhere   JP Morgan is slightly more bullish giving a price 
prediction of $38 per ounce which is the same   forecast given by Deutsche Bank meanwhile Saxo 
Bank and Wisdom Tree both give price forecasts of   $40 per ounce for silver investing Haven is the 
most bullish by far though giving a silver price   prediction of anywhere between $48.20 and $50.25 
what this means is that if we take the average   across all of these predictions this gives us an 
overall forecast of $38.80 per ounce of silver in   2025 we should note that at the time of shooting 
the price of silver is already around $33.60 so   this translates to a 15% rally from here here’s 
the thing though these predictions were made   by experts who can’t afford to give outlandish 
price forecasts that’s simply because if they’re   drastically wrong it would instantly damage their 
credibility and potentially hurt their business   in the process with all the momentum building in 
the silver market right now we wouldn’t be at all   surprised if silver’s price actually rallies far 
beyond that average from our perspective there’s   a key resistance level at around $3520 however 
if it can push past this level and we believe it   can silver’s next resistance level is at around 
$41.35 with another at around $42.90 note that   this is a 2025 forecast now all this might sound 
incredibly bullish but there are a few obstacles   that we need to consider the first relates to 
the very reason why precious metals like gold   and silver have been rallying in the first place 
uncertainty you see the reason why precious metals   have seen significant price appreciation recently 
is because most investors see them as a safe haven   this is due to a number of factors such as rising 
geopolitical tensions from the ongoing conflict   in the Middle East to the war in Ukraine and the 
rising trade tensions between the US and several   other global powers uncertainty is everywhere as 
tensions rise assets like silver become much more   attractive for investors of all kinds however 
some of these tensions are slowly beginning   to ease a ceasefire between Russia and Ukraine 
is currently being discussed and while there’s   certainly a long road ahead before the conflict 
is resolved things are at least moving in the   right direction now this is obviously great news 
but the harsh reality of the market is that as   uncertainty begins to fall so too does the appeal 
of safe haven assets like silver another cause of   uncertainty meanwhile is Trump’s tariffs that’s 
because many investors have been worried that   Trump will implement tariffs on precious metals 
as part of his wider tariff regime this has caused   many investors to scramble to move their gold 
to the US before it’s too late causing supply   concerns in the process that have helped pump 
gold’s price and you can learn more about that   in our recent video right over here however if 
it’s confirmed that tariffs won’t affect precious   metals this uncertainty instantly disappears 
and silver’s appeal as a safe haven asset will   immediately lose some traction the same is true if 
the final tariffs turn out to be much less severe   than investors expect industrial demand for silver 
could also fall especially in the green energy   sector recall that this is a major demand driver 
for silver however Trump has recently signed   executive orders that essentially move away from 
renewable energy and back towards fossil fuels   this could deal a huge blow to green energy and EV 
companies which you’ll recall use silver in their   production and of course this all assumes that 
gold investors will rotate into silver in the   first place many market analysts believe that 
gold investors could actually rotate into gold   mining stocks instead and that’s simply because 
the increase in gold’s price means that these   companies are much more profitable alternatively 
investors could move out of physical gold and   into Bitcoin which is seen by many as digital 
gold that’s because BTC has a capped supply of   21 million and is completely decentralized unlike 
gold’s infinite and uncontrolled supply like gold   BTC is also used as a store of value and its 
added volatility means that many see Bitcoin   as a high-risk high-reward gold play just like 
silver btc is also becoming increasingly popular   among institutions and heck the US government 
recently created a strategic Bitcoin reserve   this could attract traditional gold investors to 
Bitcoin since the regulations around crypto are   now greatly improving but back to silver and the 
question of what potential catalysts are on the   horizon that could significantly pump its price 
well one of the biggest catalysts could be the   Federal Reserve easing monetary policy the Fed’s 
recent forecast suggests that it expects to cut   interest rates twice this year as we mentioned 
earlier if the Fed does decide to cut interest   rates this could lead to fears that inflation 
will return with a vengeance drawing investors   to safe haven assets like silver at the same time 
fiscal spending by the US government could benefit   silver’s price in multiple ways for example Trump 
is pushing to increase military spending in the US   this could support silver’s price since silver 
is used in things like weapon systems missiles   radar and satellites the industrial demand for 
silver should also continue to grow globally   making silver a top choice for institutional and 
retail investors in fact the speculation around   the silver market alone could even be enough to 
pump silver’s price in the short term this could   also cause physical supply constraints for silver 
as its available supply is limited compared to the   high volumes of paper silver derivatives traded 
in the market and as demand for physical silver   increases the supply could tighten potentially 
leading to a shortage this could drive silver   prices much higher much like how the recent 
liquidity shortfalls have pumped gold prices   and I’ll remind you that you can learn more 
about gold’s supply concerns using the link in   the description below so while silver doesn’t have 
the glitter of gold nor the incredible technology   of Bitcoin it’s definitely still an asset to watch 
carefully okay folks if you like that video then   show it some love by smashing those like and 
subscribe buttons if you want to learn about   tokenized gold you can check out our recent video 
on that right over here and if you want to learn   about what gold’s rally means for BTC’s price 
then you can check out the video right over here   okay that’s me for now thank you all for watching 
and I’ll see you next time this is Guy signing off