Kitco News: Silver Equity Market Resembles That of Uranium in 2022
Commodities have had mixed performance over the past few years. Some commodities such as uranium and coffee have soared, although for different reasons. Uranium demand has increased while supply hasn’t caught up. And coffee demand has remained strong while supplies have dropped on weaker weather.
Other markets have been a bit more mixed. But overall, valuations generally look low following the bout of inflation in recent years.
Today, reasonable valuations and interested institutional investors could bode well for commodity prices going forward.
For retail investors, one place that could fare well for investors this year is silver. That’s because the market is as overlooked as uranium was in 2022 before its big rally over the last year.
The next 18 months could see strong demand for the metal. Its value both as a precious metal and for use in technologies should see strong demand.
Gold may see further upside this year amid a number of market fears. And where gold goes, silver also tends to follow. And when it does, it tends to have a bigger percentage move higher.
In the meantime, silver companies may see some merger and acquisition activity. That’s because large established companies have strong balance sheets and increasing cash flows to buy smaller companies with the best opportunities.