The other day i came across an article stating that each Tomahawk missile uses 500 ounces of silver. I dug around and found this:
AI uses silver as well:
I’m pretty well loaded up with silver but can’t understand why the price doesn’t rise as, for example, gold has. Anyone any views on this?
For one, there is just a lot more silver mined every year, and a lot more existing supplies of it, than gold.
If it takes 500 ounces of silver to produce a Tomahawk and there are about 100 made each year, that’s less than 2 metric tons of silver. There are some 25,000 metric tons of silver mined each year. The missile usage is not a huge amount that takes away from the overall supply!
A much bigger driver is AI/semiconductors that uses more than a third of the supply annually. Because of this industrial use, the silver price tends to lag gold because the economy is always slower to register, but it actually has been rising - it’s gone up 40ish percent in a year.
Silver will likely rise some more over the next few years, but since it already has risen from the low 20s a year ago to the low 30s today it much of the value may be baked in now.
Pete
I don’t follow silver but I do remember buying it in 2007, nearly twenty years ago now, for ~ $20 an ounce.
The fact that it hasn’t much changed in 20 years tells me that silver is a long term loser.
Silver was a little over $7 20 years ago, and is a little over $30 today.
I never bought silver itself, but I traded some PAAS and SLW back then. The sum total of all my trading in silver stocks resulted in a slight loss. I also traded some gold stocks back then, GG, AUY, and the sum total of all my gold stock trading resulted in a nice gain. I don’t mess with precious metals or precious metal stocks anymore.
