8/13/15 – Despite silver’s abysmal performance over the last four years, a rapid contraction in supply could send the grey metal to untold heights. China’s devaluation of the yuan is another factor at play, with many analysts believing it will push silver miners over the brink and into insolvency.
The precious metal is perennially undervalued. But we’ve seen an unusual amount of selling in the last four years. Investors fled commodities in favour of the stock market as the Federal Reserve dropped interest rates to historic lows. Trillions of freshly printed dollar bills were used to buy bonds—a strategic move by the central bank to stabilize asset prices.
The “easy money” policies worked wonders for a stock market rally. The S&P 500 shot up over a 63% since mid 2011, and the NASDAQ gained more than … read more