Hello Hive Fam!
I hope your day is going well and that you're having a good time.
Silver is a popular precious metal, and after gold, it is another valuable asset in the market. In the last few years, things have improved. Investing in silver has become easy. It is one of the options that has been considered good for the investment in physical form, but there are multiple options through which we can invest in digital silver. Now things are so much simplified that we can invest in digital silver easily through multiple platforms, and the entire process is very easy and smooth. Recently, I have started investing in silver through a digital method, and I have set up a daily SIP, which is convenient, and I need to set it up once.
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In the last six months, we have seen how silver has performed in the market, and this growth has been amazing, but now there is a correction in silver. apparently in the last month, we have seen the price for silver crashing by over 35% in a day, which is alarming. This kind of volatility is not expected. Read this type of asset class, like silver and gold.
Nowadays, I often get to read that silver is a new gold, which could be true or could not be, not that I'm not sure. It sounds similar when people say that Bitcoin is the new gold, and in the same way, they are calling silver the new gold. I tried to figure out the supply and demand for silver, and I hope a lot of you are aware that silver is used for multiple purposes, and even for industrial use.
If you look at the table above, then you will observe that there has been a deficit supply vs demand. The demand has been higher than the supply until 2023, and after that, there is a decline, but it's still not too low. In the market, prices are determined on the basis of supply and demand, so when there is more demand and less supply, it results in the price increase, which has been happening with silver, but the year 2025 has been different in that part. Now it will be interesting to see how this will be in the year 2026 because a declining trend has been observed from last two years in terms of deficit and falling demand.
I don't believe in the philosophy that silver is the new gold, because ultimately it is an asset that can be mined, and supply can also be increased. however looking at the overall adoption in different segments along with the industrial use, we can expect the appreciation coming to the silver price. We just can't expect significant returns like we have seen in the last few months on silver because that was like a bubble, but we can still expect good returns. Thank you!
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