When the next silver wave hits, gold will dominate
Posted On July 13, 2021
Gold will dominate silver in 2018, and gold and silver will become the new gold and platinum standard, according to RTE.
The Irish currency, which was in crisis in 2016 after a crash in the value of the pound, is likely to remain the gold standard for years to come.
Its value has risen to more than €8,000 per ounce since mid-2017, a rise of almost 1 per cent on the previous year.
It is also forecast to rise to more per ounce by 2019, as a silver price slump reduces the demand for gold.
Gold is the most popular silver standard in the world, with over 90 per cent of the world’s supply of the precious metal in existence.
But there is an economic reason why silver is so popular, and it comes down to the fact that the price of silver is very stable.
The average price of a 1 kilogram silver bar in the Irish market is now around €6.50, with gold making up about 12 per cent.
This means the average price paid for a 1kg silver bar is about €20.
Silver prices fluctuate a lot over the years.
The average price in October 2016 was around €7.70 per ounce.
In July 2018, the average was around the same as it was in October 2015, while it was still around €8.80 in October 2018.
But since the beginning of 2019, silver has been on a steep rise, reaching a peak of €835.70 in September 2019.
Silver is a safe investment.
Gold prices are also a good indicator of a country’s economic outlook, and so the price fluctuates over time.
The latest figures from the International Monetary Fund show that gold prices have declined for the past year.
This is mainly due to the falling value of silver, with the price falling by 2 per cent from January 2018 to September 2019, and by 1 per year from October 2019 to September 2020.
Gold and silver, like other precious metals, are vulnerable to price swings in the markets, especially as the global economy improves.