War and Silver

22 Nov

War and Silver

We Hope You’re Watching!

You may have heard about the popular poster back in the 1970s that read “War is not good for children and other living things!”

But war sure seems to be good for silver.

It was good for silver in the 1970s.  And you may have noted how silver prices took off after the Hamas attack on Israel in October 7,023.  Silver had closed on the trading day prior to the attack at $21.72.   As we write, it is almost $10 per ounce higher and has traded as high as $35.   

The following chart shows the performance of silver during that period.  You will note that the silver price was below the 200-day moving average at that time and has been mostly above since.

With that in mind, here’s a quick description of the gathering of war clouds now.

After Biden gave Ukraine the go-ahead to fire missiles into Russia, Ukraine launched US ATACMS and British Storm Shadow missiles into Russian territory.  Russia says the use of those long-range missiles from Nato risks nuclear war, and it has fired off its new hypersonic ballistic missile.

Meanwhile the US has evacuated its embassy in Kiev and is providing Ukraine with widely-banned anti-personnel mines.  The US has newly opened a missile defense base in Poland, which Russia has declared is “yet another provocative step in a series of deeply destabilizing actions by the Americans and their allies in NATO in the strategic sphere.”

Warfare drives people to seek protection in gold and silver as a monetary safe-haven to begin with, but silver is also essential to the weapons of modern warfare: in radar systems for detecting and tracking targets; for secure and efficient military communication hardware; in guidance systems; and in sensors and drones.

The threat of wider war on several fronts is real.  Things are grim and escalating fast.  You would probably push the STOP button if you could, but you can’t.

In the meantime, take steps to protect yourself and your family with silver.

Silver’s uses in modern warfare and technology grow year after year.  Couple that with the safe-haven demand for precious metals in times of war, along with a silver supply – demand deficit year after year, and you will agree that silver has an important place in your investments.  

With missiles flying and war clouds gathering, it’s time to add silver to your holdings.