A prominent Swiss financial expert and advocate for precious metals predicts that silver is on the brink of a significant breakthrough.
In a recent market update, Egon von Greyerz, the founder of Matterhorn Asset Management, asserts that silver is undergoing a fundamental transformation.
Unlike the surge seen in the 1970s due to speculation, von Greyerz argues that silver has not yet experienced a peak.
Instead, he notes that efforts by bullion banks to offload paper silver are faltering rapidly.
“So, what does this mean for average investors? It signifies that silver is just at the beginning of its upward trajectory, and as I have emphasized before, we can expect to see significant gains from the current price.”
Von Greyerz highlights that physical demand now accounts for 50% of production, a substantial increase from just 10% last year. This surge is driven by various industries such as solar panels, electric vehicles, electronics, and defense applications like missiles and weapons.
“Will there be corrections? Certainly, silver always experiences corrections, but this is no ordinary market. It has transitioned into a physical market, which is how it should be, rather than the manipulation prevalent in paper markets.”
In the long term, von Greyerz projects that silver could surpass $600 per ounce, with gold potentially exceeding $10,000 per ounce.
“While gold is also on the rise, silver is expected to outpace gold in the coming years. The gold-silver ratio has shifted from over 100 to around 50.
The historical ratio is likely to stabilize around 15 initially, but it wouldn’t be surprising to see it go even lower, which would be a natural equilibrium. The current demand is immense, while the supply remains scarce.”
Silver prices surged to $116 on Monday, marking a 12.5% increase, the most significant one-day jump since 2008.
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