With the release of the Silver Institute's Survey 2024 projecting the second-largest worldwide shortage of silver in over two decades, it’s easy to get excited about this commodity, writes Wealth Within chief analyst Dale Gillham.
Looking back, we can draw parallels between the current market dynamics and those of 2010.
As such, I cannot help but wonder if we are poised for a significant déjà vu moment in the silver market? If history does repeat, we will likely see a monumental move in silver prices, which will offer savvy investors a unique opportunity.
What will drive silver to surge?
Right now, demand for silver is skyrocketing beyond its traditional uses to emerging technologies including electric vehicles and renewable energy projects. Much like gold, silver has been used as a safe-haven asset during economic uncertainties and inflationary pressures – I see no reason why this would not continue.
In 2010, several factors, including loose monetary policies and geopolitical tensions, catapulted silver prices from around $17 per ounce to a peak of nearly $50 in less than a year, resulting in a gain of almost 200%. Fast forward to today and you will see the same characteristics in the silver market.
If we are on the doorstep of the next major bull market for silver, it's time to look at the opportunities that may present.
Keep an eye on Adriatic Metals
One stock that I believe stands out as an opportunity is Adriatic Metals CDI. This Australian-based company is poised to capitalise on the soaring demand for silver, but here’s the part which has me excited. From August 2010, its share price rose almost 300% in less than 12 months.
Currently, Adriatic Metals share price indicates that I am not the only one looking at this stock. Price has risen steadily since May 2018 and is now hovering near its all-time high of $4.50. The stock has a history of rising in line with the silver price, and with demand already strong, a repeat of the silver rally in 2010 could see the price of Adriatic rise strongly. Therefore, I encourage you to watch both the price of silver and Adriatic Metals very closely for the next opportunity.
Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au