Investment: The Potential of Undervalued Precious Metals

Silver, an asset that has historically served as currency alongside gold, is attracting attention as a volatile investment asset. In particular, factors such as industrial demand, technological advancements, and supply shortages are increasing silver's potential. Below, let's summarize and organize the reasons and market prospects.

1. Silver's Undervaluation and the Gold-Silver Ratio Trend

Historically, gold and silver have maintained their value in a certain ratio, generally with gold at 1 to 10-15 times the value of silver.
However, since the 1980s, the gold-silver ratio has widened to 1:84. This shows that silver is significantly undervalued compared to gold.
As gold prices rise, the possibility of a corresponding rise in silver prices is high. Silver tends to amplify the volatility of gold, showing a greater rate of increase.

2. Silver's Industrial Importance and Increasing Demand

Silver, with the highest thermal and electrical conductivity, is used as an essential material in advanced technology industries such as electronics, solar panels, and electric vehicles.
The development of the Fourth Industrial Revolution and eco-friendly technologies such as 5G, artificial intelligence, and solar power generation is dramatically increasing the demand for silver.
According to reports from the Silver Institute, the industrial demand for silver is increasing every year, reaching record highs.

3. Silver Supply Shortages and Price Increase Triggers

The supply of silver is decreasing annually, while demand is exploding. This causes a "supply shortage" in the market.
Since 2021, the shortage of silver supply has become significant, which is a major factor triggering price increases.
The inventories of silver are continuously decreasing even in major exchanges (London, COMEX, Shanghai).

4. Investment Strategy and Utilization

Investment Characteristics of Silver: Silver, which tends to rise higher than gold, often shows a pattern of explosive rises after periods of price stagnation. However, due to its high volatility, a cautious approach is necessary.
Recommended Investment Ratio: It is recommended to construct a portfolio with gold and silver at a 50:50 ratio. You can adjust the silver ratio based on gold's stability even during economic crises.
Investment Forms:
- Physical Silver: Investing in the form of silver bars and silver coins. Utilization of private trading platforms that can exclude value-added tax is possible.
- ETF Investment: A method of indirectly participating in the market without holding the actual physical assets.

5. Potential for Silver's Value Increase

Historical statistics show that silver rises explosively once it starts going up. There were cases of rises of 30 times in the 1970s and more than 10 times in the 2000s.
If the simultaneous rise of gold and silver begins, silver is highly likely to record a much greater increase than gold.
If the current gold-silver ratio were to revert to its historical average, the price of silver could theoretically rise by about 40 times its current value.

6. Conclusion: Risk Hedging with Gold and Silver Investment

Today, the devaluation of currency is so certain, and to counter this, investment in physical assets such as gold and silver is necessary.
It is recommended to invest at least 10% of your assets in gold and silver, and it is particularly important to prepare with a long-term perspective by taking advantage of the undervalued state of silver.

< Summary in English >

Silver is a historically undervalued asset that has strong potential for growth due to its industrial demand and tight supply. Although often overshadowed by gold, silver has a unique advantage due to its higher volatility and affordability. Here are the key insights:

Undervaluation: Historically, the gold-silver ratio ranged from 10:1 to 15:1, but today it has widened to 84:1. This suggests silver is significantly undervalued compared to gold.
Demand Growth: Silver's conductivity makes it essential for cutting-edge industries like AI, 5G, solar energy, and electric vehicles. Its demand is at record highs and continues to rise annually.
Supply Deficit: Silver's production is declining while its consumption increases, leading to a market imbalance that supports price growth.

Investment Strategy: Invest in both physical forms (bars or coins) and ETFs. A balanced portfolio of gold and silver (50:50) is ideal, with adjustments based on market conditions.
Potential Returns: Historical data shows silver outperforms gold during bull markets. The price could potentially rise up to 40 times under favorable circumstances.

In conclusion, at least 10% of your portfolio should be in assets like silver and gold to hedge against fiat currency devaluation.

Crafted by Billy Yang

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*YouTube Source: [머니인사이드]

– “금보다 두 배씩 더 올라요” 코인처럼 폭등하는 은 가격 (양베리 조규원 작가 3부)

[Korean Summary]

[머니인사이드]
““금보다 두 배씩 더 올라요” 코인처럼 폭등하는 은 가격 (양베리 조규원 작가 3부)“

# 은 투자: 저평가된 귀금속의 잠재력

은은 오랜 역사 동안 금과 함께 화폐로 쓰였던 자산이며 변동성이 높은 투자 자산으로 주목받고 있습니다. 특히 산업적 수요와 기술 진보, 공급 부족이라는 요인들이 은의 잠재성을 높이고 있습니다. 아래에서 그 이유와 시장 전망을 요약·정리해볼게요.

1. 은의 저평가와 금-은 비율 트렌드

금과 은은 역사적으로 일정 비율을 이루며 가치를 유지했으며, 일반적으로 금 1개에 은 10~15개의 가치였습니다.
하지만 1980년대 이후 금-은 비율이 1:84로 벌어졌습니다. 이는 은이 상대적으로 금에 비해 현저히 저평가되었음을 보여줍니다.
금 가격 상승에 따라 은 가격의 동반 상승 가능성이 높습니다. 은은 금의 변동성을 확대 재현하며 더 큰 상승률을 보여주는 경향이 있습니다.

2. 은의 산업적 중요성과 수요 증가

은은 열·전기 전도율이 가장 높은 원소로, 전기·전자, 태양광 패널, 전기차 등 첨단 기술 산업에서 필수적인 자재로 사용됩니다.
5G, 인공지능, 태양광 발전 등 4차 산업 혁명 및 친환경 기술의 발전이 은의 수요를 폭발적으로 증가시키고 있습니다.
세계 은 조사기관(Silver Institute)의 보고에 따르면, 은 산업 수요는 매년 사상 최고치를 경신하며 증가하고 있습니다.

3. 은 공급 부족과 가격 상승 트리거

은의 공급량은 매년 줄어들고 있으며, 수요는 폭발적으로 증가하고 있습니다. 이는 시장에 '공급 부족' 상태를 야기합니다.
2021년부터 은은 공급 부족 현상이 본격화되었으며, 이는 가격 상승을 유발하는 중요한 요인입니다.
주요 거래소(런던, 코맥스, 상하이)에서도 은의 재고가 지속적으로 감소하고 있는 상황입니다.

4. 투자 전략과 활용법

은의 투자 특성: 금보다 높게 오르는 경향을 보이는 은은 가격 횡보 후 폭발적으로 오르는 패턴을 자주 나타냅니다. 하지만 변동성이 크므로 신중한 접근이 필요합니다.
투자 비율 추천: 금과 은을 5대 5로 포트폴리오를 구성하는 것을 권장. 경제 위기에서도 금의 안정성을 바탕으로 은의 비율을 조정 가능.
투자 형태:
- 실물 은: 은괴(Silver Bar)와 실버 코인 형태로 투자. 부가세를 제외할 수 있는 개인 간 거래 플랫폼 활용 가능.
- ETF 투자: 실물을 보유하지 않는 대신 간접적으로 시장에 참여할 수 있는 방식.

5. 은의 가치 상승 가능성

과거 통계를 보면 은은 한 번 오를 때 폭발적으로 상승합니다. 1970년대에 30배, 2000년대에 10배 이상 상승한 사례가 있죠.
금과 은의 동반 상승이 시작된다면, 은은 금의 상승폭보다 훨씬 큰 상승을 기록할 가능성이 높습니다.
현재 금-은 비율이 과거 평균치로 회귀할 경우, 은 가격은 지금보다 약 40배 오를 가능성도 이론적으로 가능합니다.

6. 결론: 금과 은 투자로 리스크 헷지

오늘날 화폐 가치의 하락은 너무나 확실하고, 이에 대처하기 위해서 금과 은 같은 실물 자산에 투자해야 합니다.
금과 은에 최소한 자산의 10% 정도는 투자해두는 걸 권장하며, 특히 은의 저평가된 상태를 활용해 장기적인 안목으로 준비하는 것이 중요합니다.

< Summary in English >

Undervaluation: Historically, the gold-silver ratio ranged from 10:1 to 15:1, but today it has widened to 84:1. This suggests silver is significantly undervalued compared to gold.
Demand Growth: Silver's conductivity makes it essential for cutting-edge industries like AI, 5G, solar energy, and electric vehicles. Its demand is at record highs and continues to rise annually.
Supply Deficit: Silver's production is declining while its consumption increases, leading to a market imbalance that supports price growth.

Investment Strategy: Invest in both physical forms (bars or coins) and ETFs. A balanced portfolio of gold and silver (50:50) is ideal, with adjustments based on market conditions.
Potential Returns: Historical data shows silver outperforms gold during bull markets. The price could potentially rise up to 40 times under favorable circumstances.

In conclusion, at least 10% of your portfolio should be in assets like silver and gold to hedge against fiat currency devaluation.