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Peter Redward's avatar

Thanks Callum. I really struggle to get too enthusiastic about silver. Yes, it's in supply deficit, yes above ground stocks are falling, yes the Mint Ratio is elevated. But it's not a monetary instrument anywhere really, it doesn't benefit from Central Bank demand, there's huge potential for silver recycling to come out of the woodwork, it's strongly connected to the global industrial cycle, which isn't looking great. Sure, silver exploded higher yesterday, but it's a much thinner market than gold, higher volatility, wider bid/ask, so when gold rises, silver can do this.

There are so many investors bullish silver, all looking for the silver paper market to collapse. We saw all the same arguments in February 2021 and here we are at about the same level.

To say that I'm mild about silver is a massively non-consensus view. I like it higher, but personally I prefer gold, and if I'm going to take a punt on another precious metal, I prefer the macro story behind platinum.

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