Kitco: The Real Reasons to Invest in Silver Now

Year-to-date, gold has not only hit new all-time highs, it’s managed to beat the overall stock market. And while gold has been trending higher, silver has also started to show some signs of strength.

Gold tends to move for fundamental reasons. Gold is typically owned for asset protection purposes. But silver, while also a precious metal, is far more useful for a number of industrial purposes. That could help push silver higher than gold in the years ahead.

Fabrication and industrial demand for a number of technologies, including solar panels, has been a boom for silver.

Investor demand has also been on the rise, and changes in investor demand can make a big difference in terms of price trends.

And while demand has risen, new supplies have been coming online at a slower pace.

That suggests that silver could be in for a major price jump. CPM Group believes that could happen within the next two years, and mark the biggest move relative to gold in over a decade.

Investors looking for a strongly-performing metal may find better opportunities with silver rather than gold.

Buying shares of a producer such as Silvercorp Metals (SVM) could provide that upside exposure in the years ahead. Shares are already up over 100% in the past year as silver has gradually trended higher. A massive spike higher in silver could lead to further returns.

To review the latest analysis on the silver market, click here.