Silver Is Poised for a Rally Next Year... Here’s Why

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Silver Is Poised for a Rally Next Year… Here’s Why By Nomi Prins, Editor, Inside Wall Street with Nomi Prins Silver is setting up for explosive gains. I know, I know… It’s a bold statement to make. And amid all the headlines covering the market mayhem this year… From stocks and bonds to energy and crypto… I can forgive you if you haven’t been paying too much attention to silver. But you should be. As we’ve been showing you, [silver will play a vital role in the global shift towards New Energy](. Its demand and price should explode in the years to come. However, something recently caught my eye that I believe will bring about a historic silver bull market even sooner. Potentially as soon as 2023. So today, I’ll shed some light on that, and I’ll show you how to take advantage of this shift. Recommended Link [5 billionaires betting on this tiny $4 company]( [image]( This tiny company doesn’t cost hundreds of dollars like Tesla. Right now, it trades for around $4. The opportunity is off the charts. Which is why one expert on CNBC said, “You can follow the money... all the investors are smelling it.” So why are 5 billionaires – Bill Gates, Jack Ma, Richard Branson, Michael Bloomberg, and Jeff Bezos – betting this tiny $4 company could derail Tesla’s plans for the future? Former Goldman Sachs executive Nomi Prins has put together a quick 30-second demonstration to answer that question. [Click here to learn more.]( -- Silver Faces a Supply Crunch Silver mining was hit hard during the Covid-19 crisis. Mining operations shut down… mine developments were suspended… exploration projects were put on ice. In fact, in Mexico, the world’s largest silver producer, all mines were shuttered during the spring of 2020. The silver market didn’t have to wait long to experience the negative consequences of these policies. In 2020, mined silver output reportedly fell by 5% year-over-year. In 2021, supply issues and rising demand produced a silver market deficit of 48 million ounces. And earlier this month, the Silver Institute published estimates that the silver market could reach a shortage of 194 million ounces in 2022. That’s up four times from the prior year, creating the biggest deficit in decades. This comes as silver demand is projected to reach an eight-year high this year, at over 1.21 billion ounces. That’s up 16% from last year. [Featured: Do Recession-Proof Stocks Exist???]( Use of silver by industry, for jewelry, and bars and coins for investment are all forecast to reach record levels in 2022. Now, a deficit is not proof that a commodity will soar. Deficits may not catch up with a given commodity immediately. But if history is any guide, eventually, they do. And when you take [rising demand]( into account, this is bullish for silver. Recommended Link [I’m still doing this 36 years later…]( The Trading Method That I Used as a Former Money Manager (Special Demonstration Below) [image]( Hi, my name is Jeff Clark. For the past 38 years, I’ve helped people from all walks of life retire wealthy. Retired school teachers… doctors… even the occasional pro-athlete. But I haven’t done it the usual way… My method is different. It’s unlike anything you’ve probably ever seen. For the first time, I’ve put together something special to show you how it works. This is the same method I used as a former money manager. And I still use it to generate tens of thousands of dollars every year. You can [watch it here…]( [Check it out.]( -- Is Silver Still a Bargain? The price of silver is down roughly 7% this year. Meanwhile, the S&P 500 is down roughly 16%. And the Nasdaq has fallen nearly 29%. So silver has held up decently amid the market turbulence of the past year. Still, at a price of $21.34 per ounce, silver is trading well below its July 2020 price of roughly $27 – before the Fed’s printing press really went into overdrive. In other words, it’s trading as if no money-creation had happened. That makes it look like a bargain in my book. But let’s dig deeper… Longtime readers may remember the [Gold-to-Silver ratio](. It tracks the price of gold in silver terms. Put another way, it tells you how many ounces of silver you can buy with 1 ounce of gold. Right now, 1 ounce of gold is changing hands for about $1,752. The price of silver, as I mentioned, is $21.34 an ounce. So our Gold-to-Silver ratio is at 82. In other words, you need 82 ounces of silver to buy 1 ounce of gold. This tells me that silver is cheap relative to gold. Let’s look at a chart of the ratio to see why… [Chart] The orange line above tracks the Gold-to-Silver ratio. The blue line is the historical average. When the orange line is high, it means silver is cheap relative to gold. When the orange line is low, it means silver is expensive relative to gold. One thing jumps out from the chart above. And that is the ratio’s most recent peak. In March 2020 (amid the coronavirus crash), the Gold-to-Silver ratio shot up to 112. That’s the highest it’s ever been. You needed 112 ounces of silver to buy a single ounce of gold. I don’t expect silver to return anywhere near those (crazy cheap) levels any time soon. In fact, the ratio has been on a downward trend since September 2022. But it still sits well above the 54-year average of 57. The current reading is still 44% above that average. All in all, silver looks like a relative bargain right now. And that brings us to our last question. [Featured: Dr. Nomi Prins: “Musk spent $10 billion on these. This is bigger…”]( Why Hasn’t Silver Broken Out Yet? It’s an important one. After all, if you own silver, you might buy it for the same reasons you buy gold… To protect your wealth against negative real interest rates, rampant government debt, and money-creation. And today, despite the Fed’s best efforts, we’re still living with a level of inflation we haven’t seen in decades. But silver (much like gold) is also facing headwinds from the U.S. dollar. As I wrote previously, [the dollar has remained persistently firm]( relative to other currencies. And, more importantly, silver’s growth (again, much like gold’s) has been hindered by the Fed’s six interest rate hikes so far this year. You see, rising interest rates are considered a bearish sign for silver. That’s why its price is prone to move in the opposite direction of interest rates. The chart below shows this inverse correlation. [Chart] You’ve probably heard the saying: “Precious metals don’t pay any interest or dividends.” So as interest rates rise, folks will often choose to invest in interest-bearing accounts instead of buying gold or silver. Now, the Fed’s next interest rate decision will take place on December 14. That’s when we’ll know if the Fed is staying hawkish through the end of the year… Or if it’s kicking off the [three-stage pivot]( I’ve been writing about. At last glance, the market is pricing in about 70% odds of just a half-point rate increase. As for my view, it hasn’t changed. I still believe the Fed will start pivoting this winter. This, coupled with the U.S. dollar’s gradually waning strength against other major currencies, bodes well for silver going into 2023. Recommended Link [The #1 stock for 2023]( [image]( Investment expert Brad Thomas knows how to pick stocks. He bought Starbucks back in 2006… He bought Nike in 2003… And he and his team delivered a perfect track record from March 2020 to September 2022. Now, for a limited time, he’s revealing his #1 stock for 2023… [Get its name here.]( -- What This Means for Your Money So how do you play this opportunity? [In past dispatches]( we told you about one of the simplest ways to buy physical metal – coins and bars. The main drawback of investing in physical silver is that coins and bars are bulky to store. So, if you’re new to investing in silver, another way to get exposure is through a silver exchange-traded fund (ETF). A silver ETF invests primarily in hard silver assets, and you can buy it through your brokerage account, like a stock. We like the Aberdeen Standard Physical Silver Shares ETF (SIVR). The fund stores its metal in London, England, but it’s listed on the New York Stock Exchange. Now is the time to add some exposure to your portfolio. Happy investing, and I’ll be in touch again soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG One reader thanks Nomi for her calm and practical insights during these challenging markets… I love your content as it is not only practical but it is fact-based in an era of immense global change and very often highly charged emotional language. Thanks so much for your expert insights. Keep up the great work in continuing to give the average layperson investor a leg up in these challenging markets. – Sean D. Does silver currently hold a place in your portfolio? Do you agree with Nomi that silver will explode in the coming years? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Silver Is Poised for a Rally Next Year… Here’s Why). IN CASE YOU MISSED IT… [Market Wizard forecasts 5 years of famine]( Hi. Larry Benedict here with a new forecast. I believe we’re headed for a serious rough patch… I believe all the indexes will be flat or negative for a long time. We’ve had 10 years of plenty. Now we’re looking at five years of famine. I predicted the Fed would issue a series of rate hikes…. And that is what is going to cause this prolonged bear market. I think we’re about to see a repeat of the late ’70s and early ’80s. Inflation was rampant then, so the Fed issued a series of rate hikes to tamp it down. Naturally, that combination created wild volatility. It was very similar to what we’re seeing right now. I’ve lived through times like these… And my One Ticker Trader is perfect for what’s coming. I believe you could have several opportunities to see huge gains in very little time. To learn all about it… [Watch my latest video right here.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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