Tue. Jan 18th, 2022

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Get our FREE SD Bullion Guide: https://SDBullion.com/book Another year has come and gone. But before we look ahead to 2022, let’s examine where the major precious metals markets are closing this year 2021.

#Silver and #Gold spot prices have rallied slightly in this year’s final week of trading. I am recording this year’s last SD Bullion market update just before the New York COMEX begins trading. Currently, the spot silver price is trading over $23 oz, and gold is near $1,820 oz, with the Gold-Silver Ratio down to 78.

In the larger picture, here is the gold price chart covering this over fifty-year full fiat currency era. You can see this past year’s price consolidation in a longer-term context.

This past week, the Tokyo Nikkei newspaper reminded its readers of the bigger picture context for gold in an article entitled, “Central Banks Accelerate Shift from Dollar to Gold Worldwide.” Official government gold holdings are now at 31 years high levels.

Article: https://asia.nikkei.com/Spotlight/Datawatch/Central-banks-accelerate-shift-from-dollar-to-gold-worldwide

Central banks worldwide are increasing the gold they hold in foreign exchange reserves, bringing the total to an over three decade-high level in 2021.

A chart illustrates how central banks have built their gold reserves by more than 5,5000 metric tons, adding around 177 million ounces of Official Gold #Bullion holdings since the 2008 global financial crisis.

This is not by mere coincidence. Central banks know that gold bullion is the ultimate backstop of the monetary and financial system. And even with current systematic price discovery suppressed gold values, gold already makes up over 13% of the world’s official international reserves. Only the fiat euro and fiat US dollar at the moment have larger allocations held.

In 2020, the currency-by-currency ratio of the fiat US dollar fell to its lowest level over the last 25 years.

Depending on which fiat US dollar M1, M2, or M3 supply aggregate one uses, from 1970 until now ending in 2021, the amount of fiat US dollars in the financial system has gone up anywhere from 100 to 40 times where it was fifty-one years ago.

In this decade’s larger picture, the fundamental drivers for higher gold values look very sound as we head into 2022.

Turning now to the silver market.

The spot silver price has been throughout this entire currency era.

Remember how I just told you the amount of fiat US dollars in the financial system is up anywhere from 40 to 100 times over the last fifty-one years?

Meanwhile, you can see here the silver spot price has only risen just over tenfold over the last five decades and one year. Whereas the gold spot price has already been increased over fiftyfold since 1970. And historically, during bullion bull market manias, silver often outperforms gold for brief timeframes.

And by both central bank and investor actions over the last roughly 24 months. The world has witnessed a strong building belief that silver bullion is perhaps the most undervalued asset one can own at the moment.

Both record-sized investment and industrial demand are bolstering the case for rising silver values in the years to come.

This past week, the Silver Institute published estimates showing that silver’s total for overall demand in 2021 will be a record at just over one billion ounces.

With a six-year high in physical silver bullion investment taking over one-quarter of that demand. While unsecured silver ETF holdings are to increase 150 million oz after 2020’s record 331 million ounces equivalent inflow.

Industrial demand for silver also hit an all-time record of 524 million oz as increases in silver use in electronics and solar panels increased double digits in percentage terms.

This year we also saw the beginning of the Reddit Wall Street Silver phenomenon, which kicked off at the end of January 2021. Since that date, they have seen nearly 70 million ounces of silver drain from registered COMEX silver piles, much of which has gone into retail bullion products for long-term silver investor holdings.

From zero to over 175,000 Reddit users, this growing phenomenon of new silver bullion buyers came out of seemingly nowhere and has grown the number of investors learning the bullish case for silver in the coming years.

It will be interesting to see how much silver investor demand grows given the internet’s ability to virally increase investor inflows into the sector and perhaps momentum betting eventually feeding on itself to rampant silver spot price upsides ahead.

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That is all for this final SD Bullion Market Update to end 2021.

Once again, we here at SDBullion.com want to wish you and yours a happy, prosperous New Year. And as always, take great care of yourselves and those you love.

20 thoughts on “Silver Catch-Up to Gold | Bullish Beyond 2022”
  1. Thanks James! Happy New Year to you, and to all the silver bulls out there. Silver Squeeze 2.KO for 2022? Anything is possible. Have a safe and happy new year everyone!


  3. Thank you James for all your hard work, and spreading the truth to the people, and a special Thanks goes out for a chance to win the Monster Box! Happy New Year

  4. Happy New Year, James, to you and your family. May God bless you richly for all you do, and continue to give you wisdom. I love the Scripture verse on the lid of the bearings boxes you ship out.

  5. *I* *just* *made* *my* *first* *$20,000* *in* *cryptocurrency* *I’m* *so* *glad* *I’m* *gonna* *have* *a* *successful* *retirement.*

    1. @Rob Clinton’s I trade with Mr Johnnie Avant too, for a month now… I’ve made $9,000.
      I really wanna go on long term… but too much bills.

    2. *Most* *people* *think….*that* *Investing* *in* *crypto* *is* *all* *about* *buying* *coins* *and* *holding,* *till* *it* *rises,* 🙅 *come* *on* *it* *takes* *much* *analysis* *to* *be* *a* *successful* *crypto* *trader.*
      *I’ve* *made* *$16,000* *in* *two* *weeks* *of* *trading* *with* *Johnnie*

    3. @Profs. Kauser *After* *having* *some* *doubts* *on* *investing* *in* *crypto,* *I* *feel* *so* *ecstatic* *on* *my* *first* *profit* *withdrawal* *of* *$16,200* *from* *my* *$3,400* *investment*

    4. Wow!! I thought I was the only one trading with Mr. Johnnie , I just withdrew my profits of $25k after investing $6,500 in two weeks of trading.

    5. Long term investment is the best now. I invested $3,500 in march and i top up my trade with $200 every week.
      Now, I’m having over $87,000 on my dashboard. Toping up your trade is really important.

  6. Im not negative but another year has come and gone and my “Hard Assets” buy less stuff now than a year ago.

  7. Silver and Gold are going to do nothing until the whole system implodes on it self, the last 2.25% of the value of the USD are going to be the most volatile inflation, hyperinflation is fast and nasty and it will start overnight without warning. (I was in Brasil in 1990s during the bank holiday, no warning! it just happened)
    It is better to be 7 years early than 24 hours late in this scenario… just keep staking if you haven’t gotten what you want tucked away…

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