David Morgan, one of the most recognised analysts in the precious metals industry and a consultant for hedge funds, high-net-worth investors, mining companies, depositories and bullion dealers said he is confident silver will outperform gold in 2021.
Morgan is the founder and owner of the Morgan Report, which is widely regarded as a world-class publication designed to build and secure wealth. He is also the author of The Silver Manifesto and a featured speaker at investment conferences worldwide. Based on the current economic situation globally, Morgan believes everyone should have some physical metal to gain leverage by going into mining equities. His ideas are expressed in the movie Four Horsemen, a feature documentary.
“There have been many silver stocks that have done quite well. I think for the considerable future, the next three years or so, silver will continue to outperform gold,” he said in a recent interview with market news website Investment Intel.
Morgan noted silver is used mainly for technology, in electricals and electronics as well as in microwaves, washing machines and fridges. Smart devices also use silver and it is used widely for medical purposes because there are antimicrobial properties in silver. Medical uses include instruments that are inserted or injected and in wound-care products.
Morgan said there will be a huge demand for silver in green energy, for items such as solar panels. The question as to how much will be used for green energy purposes will depend on whether laws are passed to ensure a minimum quality standard which would require higher levels of silver. “A lot of people are aware of green energy so a push from the demand side on the consumer level and industry will push solar bigger than it has [gone] already,” Morgan said.
A survey by the The US Geological Survey (USGS) stated the world’s silver supply will be depleted by 2025, making it the first widely used industrial commodity to have its in-ground supply exhausted.
According to finance website 401kRollover.com, this led billionaire and silver expert Keith Neumeyer to forecast a compression that would send the price of silver to triple digits.
Precious metals expert John Halloran added “smart money” is buying silver because of the shortages.
“Even the US government stockpile has been completely exhausted. The US, Canadian and Chinese mints have all been forced to acquire silver on the market,” Halloran has been quoted as saying.
The 401kRollover.com site said, “To conservatively turn one buck into two or three will be a real possibility in the physical silver market by 2025. Low supply and high demand currently position silver for big gains and in the current investment environment, many would be happy to see that level of return over the next few years.
However, when asked if silver production was declining, the same as gold, Morgan said he doesn’t necessarily think so.
“The USGS said silver will be the first to go off the period chart, but I’m aware of a couple of silver deposits which are in the billion-ounce category. You don’t mine that over a year: You mine that over 20 or 30 years.
“I think we’ve hit peak gold, but I don’t think we’ve hit peak silver yet,” he said.
“It is my belief that silver’s highest value would be as a monetary asset, like gold, not a commodity to put in your cell phone,” Morgan added.