Uitgever ETF: ETF Securities

Ticker: PHAG

ISIN: JE00B1VS3333

Valuta: Euro

Beurs: Euronext Amsterdam

The silver price is under pressure due to the expectation of more interest rate hikes and the high dollar. However, silver is more dependent on supply and demand. For years, the demand for silver has been greater than what mines produce. The energy transition will further increase the demand for silver. At the current low silver price, the supply will decrease further. There will come a time when there will be a shortage of silver. That will cause the silver price to rise sharply.

Uitgever ETF: WisdomTree

Ticker: COPAP

ISIN: GB00B15KXQ89

Valuta: Euro

Beurs: Euronext Parijs

Now that concerns about the economy are mounting, many raw material prices are falling. The copper price has also fallen for this reason. I expect an economic contraction. But I don't expect a declining demand for copper. Because copper is necessary for the energy transition. More and more are going to become electric and that requires copper. Despite an economic contraction, the demand for copper will continue to increase. Increasing the supply of copper is not easy or quick to achieve. It takes years to start up a copper mine. There is already evidence that there will be a copper shortage in the long run. The LME (London Metal Exchange) issues a monthly report with the copper stock. The lowest level in this century was reached in June. Reason for me to buy this copper ETF.

Uitgever ETF: WisdomTree

Ticker: PHAG

ISIN: JE00B1VS3333

Valuta: Euro

Beurs: Euronext Amsterdam

The silver price has suffered greatly from the rising dollar. The silver price has now reached a level that many silver mines will lose. This will ensure that unprofitable silver mines close earlier and new silver mines with too high costs will not be started. Last year, less silver was mined than the market demand. However, because everything will be electric, the demand for silver will increase even further. Less supply and more demand. In such a situation, the silver price will rise sharply again.

Uitgever ETF: WisdomTree

Ticker: PHAG

ISIN: JE00B1VS3333

Valuta: Euro

Beurs: Euronext Amsterdam

The silver price today has reached a level where many silver mining companies are going to make a loss. Not that they will immediately close the silver mines. But it will reduce production rather than increase it. And that while last year the demand for silver was already greater than the production. Due to the high oil price and the problems with Russia, the energy transition to electricity will go even faster. And that takes a lot of silver. Much more than is now brought above the ground per year. With a lack of silver in the near future, it is inevitable that the silver price will rise.

Both gold and silver are falling today. Partly due to fears of Fed rate hikes. Today also due to more corona cases in China. More lockdowns in China will lead to a drop in demand and therefore lower inflation is the (wrong) idea behind this. Less demand will indeed cause inflation to fall. In order to notice that, there will have to be many more lockdowns in China than is currently the case. So a bit premature. But I also think you should look at the inflationary effects of Chinese lockdowns differently. The small inflation effect will be a drop in demand. The gigantic inflation effect is disruptions in the supply chains. The whole world is too dependent on deliveries from China. Hiccups in those deliveries will lead to scarcity or even unavailability of many products. This will cause huge price increases, causing inflation to rise much faster. And that is good for gold and also for silver, which has been severely punished today.

Uitgever ETF: WisdomTree

Ticker: PHAG

ISIN: JE00B1VS3333

Valuta: Euro

Beurs: Euronext Amsterdam

High inflation is of course reason to invest in silver. But for silver, there is something that weighs even more heavily. The climate plans. Silver is needed for almost everything that will become electric (think of cars). Until now, the climate plans have been slow. But the high oil price and the will to no longer depend on supplier Russia will accelerate that choice for electric. Due to the high oil price, electrical is sometimes already cheaper or the price difference has decreased significantly. All reasons why the choice for electric and with it the demand for silver will accelerate. It is already known that silver mines cannot meet that much higher demand. As a result, the silver price will rise sharply.