Silver: It’s the Schmear, Not the Gold!

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Alright, settle down, you beautiful investors! Last year, silver didn’t just beat gold, it practically did the Charleston over it. A 145% jump versus gold’s measly 64%? Oy vey, that’s a difference! And this year? Still happening! We’re talking a 25% pop in a couple of weeks while gold puttered along like a Model T. Now, I’ve seen a lot of bubbles in my time – and believe me, there have been a LOT – but this isn’t one of ’em. This is a slow burn, a beautiful, shimmering slow burn. So, let’s talk about why silver is poised to leave gold choking on its dust, shall we?

1. Interest Rates: The Fed’s Fiddling

The Federal Reserve cut rates three times last year, and the rumor mill says they might do it again. Now, I’m no economist, but even I know what that means. Lower rates make holding shiny, non-producing assets like gold and silver a little more… palatable. It’s like offering a free bagel with your investment. Suddenly, it’s a little more attractive, isn’t it? When everything else is paying peanuts, a little sparkle can go a long way. Think of it as the difference between a drab accountant and a dazzling showman – both have their place, but which one do you want on a Saturday night?

2. Industrial Demand: Silver is the Working Stiff

Warren Buffett, that silver-haired genius, has been scooping up silver for years. And let me tell you, that man knows a thing or two about money. He doesn’t just buy things because they look pretty, he buys things that do something. Gold? He calls it speculation. Silver? It actually makes stuff! It’s the unsung hero of the modern world, the plumber of the technological age!

Silver is the most conductive metal on the periodic table, which means it’s in everything. Electric vehicles? Silver. Solar panels? You guessed it, silver. Smartphones, televisions, radios – all powered by the magic of silver. And speaking of solar panels…

The U.S. is planning to add 70 gigawatts of solar capacity in the next two years. That’s a lot of sunshine, folks! And each gigawatt needs about 3.1 million solar panels. Do the math! That’s 143 million ounces of silver just for America! And America isn’t the only one going green. China is installing solar panels faster than you can say “renewable energy.” We’re talking hundreds of millions of ounces of new demand. It’s like a silver rush, only this time it’s powered by sustainability, not pickaxes!

Now, some folks will tell you that supply will just increase to meet demand. But that’s where they’re wrong. This isn’t a tap you can just turn on, folks. It’s more like a complicated Rube Goldberg machine.

3. Silver’s a Byproduct: It’s Not the Star of the Show

Most silver isn’t mined directly. It’s a byproduct of mining for other metals – gold, lead, zinc, you name it. It’s like the sidekick in a superhero movie – essential, but not always the main attraction. This means supply can’t just jump when prices go up. It’s a slow process. As Warren Buffett said back in ’98, and he’s still right, silver supply is… let’s say… uncooperative.

Last year, global silver production only rose by 1%. And this year? Maybe 2%. Meanwhile, new gold mines are opening up, and gold miners are pumping out the shiny stuff like it’s going out of style. Equinox Gold, for example, is expecting an 80% jump in production. See the difference? Silver is the reluctant performer, gold is the showboat.

A Simple Way to Play Silver

Now, I’m not telling you to start digging holes in your backyard. There’s an easy way to get in on this action: the iShares Silver Trust (SLV +1.57%). It’s an exchange-traded fund designed to track silver’s performance. It’s already up 25% this year, and I suspect it has a lot more room to run. Plus, the expense ratio is a measly 0.5%. That’s less than a decent pastrami on rye! Skip the headache of buying physical silver, avoid the volatility of individual mining stocks, and let the iShares Silver Trust do the heavy lifting. It’s a smart move, folks. A very smart move.

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So there you have it. Silver isn’t just a pretty face. It’s a working metal, a byproduct with limited supply, and a potential gold-beater in 2026 and beyond. Now, if you’ll excuse me, I have a date with a very large pastrami sandwich. And remember, folks: invest wisely, and always leave room for a little bit of schmear!

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2026-01-22 18:13