Izzy Friedman sees silver becoming more valuable than gold due to shortages
The best raw material to hold in my opinion is silver
. That's what I felt 30 years ago and is what I feel today. Silver
one of the very few commodities that the average person is capable of holding in his own possession.
In particular, the U.S. Mint makes the most beautiful and popular coin
in the world in the form of the U.S. silver
Eagle. So popular is this coin
that I am still convinced that someday the U.S. Mint will not be able to keep up with demand and the premiums on these coins
will explode when the U.S. Mint stops producing them. The way the world is going it appears that all the trends point towards greater silver
demand. It looks to me that everything in the future will run on electricity, of which silver
is the best conductor. Throw in the tremendous appeal and growth of solar panels and it's hard to foresee how silver
won't be a raw material superstar. Because it is so easy for the average person to hold and so cheap compared to gold
, one of the biggest demands for silver
will be from investors. These investors will compete long term with the silver
users who must have silver as a raw material. This is a potential buying combination that is not present in any other commodity. That's what makes silver
so special. ...
How high can the price of silver
climb? Based upon its importance as a raw material, I still believe that silver
will pass the price of gold
which is not needed as an industrial material. Besides, I still believe that silver
is much rarer than gold
in above ground inventories and even my grandchildren know that the rarer item should be more valuable. ...
What I can tell you from my experience is that the most insane prices occur when there is a shortage.