According to Jonathan Rose, CEO of Genesis Gold Group, the devaluation of the dollar, inflation and U.S. monetary policy are the main drivers of growth in the precious metals market.
A Kitco News survey shows a jump in silver by more than 50% to $38 per ounce and a rise in gold to $2,100 per ounce in 2023.
Morgan Stanley suggests that silver prices could be 2 to 3 times more volatile than gold prices.
The main reason for that, according to Rose, are the sizes of the markets. The silver market is much smaller than the gold market, consequently, it has less liquidity.
Nevertheless, the gap may be narrowed as the use of silver in industry grows. More and more solar panels are being used in power generation, and the automobile sector is shifting to electricity.
According to Rose, silver has an industrial potential, which gives a much higher price cap, so professionals are positive about it.
He added that demand for silver is at record levels and its attractiveness as a safe-haven asset is a significant reason to invest in this metal.