Silver On Sale: Silver-Gold Ratio Back Above 80-1
https://www.zerohedge.com/commodities/s ... above-80-1
Series of higher lows.
Gold tends to be driven by the supply of money in the economy and the 40% increase in M2 over the past two years is highly positive.
When inflation expectations rise faster than interest rate expectations, the opportunity cost of holding gold declines, lifting its price.
SPDR Gold Shares, the largest bullion-backed exchange-traded fund, on Friday recorded its biggest net inflow in dollar terms since listing in 2004 -- worth $1.63 billion.
Demand for the haven is getting support from the drop in equities, U.S.-Russia tensions over Ukraine, and the plunge in Bitcoin.
In tonnage terms, Friday’s net inflow was 27.6 tons.
The weekly chart looks more interesting than the daily. On this longer-term time frame, one can see that prices are converging inside converging trend lines. This means that in the next few weeks, prices will have to break in one or the other direction.
Global demand projected to climb 8% to a record of 1.11 billion ounces.
Supported by record industrial fabrication which could improve by 5%.
Record photovoltaic solar panel installations.
Robust demand in the automotive and 5G-related industries.
Physical silver investment demand for silver bars and bullion coins could surge 13% in 2022.
Jewelry and Silverware demand in 2022 could rise by 11% and 21%, respectively.
Total global silver supply is expected to increase by 7% to 1.092 billion ounces in 2022, with silver mine production forecasted to expand 7% to a six-year high this year.
Silver recycling should be more modest in 2022, with volumes likely to rise by 3%.
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