Silver status and alternative investment options

Silver Prices Have Risen Sharply, But Supply Is Tightening

What This Means for Investors Looking to Secure Physical Silver

By now, all those who have invested in silver, or even those with an interest in silver as an occasional investment option, will be aware of the significant price hike that it experienced at the end of last year.

If you are one of these people, you will also be acutely aware of the pretty huge shortage of silver bullion at this time. This is creating quite a problem because if paper investors who, having lost faith in the dollar, demand that real silver be delivered to their doorstep, it simply is not available.

Where is the silver price going?

What silver investors need to know

The big question on investors minds then is, ‘’in a short squeeze how high are silver prices likely to go?’’ Well, it is very hard to say, as the opinion of market analysts differ widely on the subject.

Some say silver could rise from the current price to over $200oz, others are not as optimistic, and then there are some who, influenced by the current war going on in the Middle East, say it could go even higher than that.

Who knows? At this stage we don’t even know if, and when, the short squeeze will happen, and that will be a significant factor.

Silver bullion status: COMEX inventories and the silver short squeeze

According to experts, the actual silver being held in COMEX vaults is around 430 million ounces, but if all the paper investors had to call for the real thing, as opposed to accepting cash, this total would be closer to 500 million. This situation is known as a ‘Silver short squeeze.’

Based on the above information let’s make a checklist of exactly where silver investors stand right now…

Silver prices are increasing, despite the banks trying to push them down.
Silver inventories, or the actual silver being held in the COMEX vaults, are decreasing.
An additional point is that the gold-to-silver ratio is falling.

Branded Silver offers an alternative

In all this uncertainty, Branded Silver Bullion customers are very happy they are sitting with the real thing and that they made a great investment. Now, of course, they may turn their eyes to other investments like gold, which is more freely available, but we would advise that you still get as much silver as is available.

We are proud of the fact that for many years we have provided South African investors the opportunity to buy internationally branded silver bullion products at the lowest possible premium above the silver spot price. This ensured our clients always had the option to obtain the largest possible amount of investment grade silver bullion per Rand invested.

Now we will continue to do so by expanding our offering to include gold bullion products, so talk to us about your specific silver and gold bullion requirements, and we can always give you the latest and best advice on the silver status and alternative investment options.

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