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In October 2023, silver prices surged due to a newfound demand and supply shortages, reaching a 45-year high. The rise in prices is reminiscent of a 1979 incident when the Hunt Brothers cornered the silver market, leading silver prices to spike 713% year-over-year, peaking at $49.45 per troy ounce.
Currently, as demand increases, particularly from India amid a shortage of silver available in bars, the market is exhibiting signs of a new squeeze. As of now, the silver-to-gold ratio stands at 1.25%, indicating a historically favorable point for investing in silver, based on previous trends that have signaled significant gains following similar ratios.
Despite the market dynamics, silver’s supply remains constrained, as it is primarily a byproduct of other metal mining. Forecasts suggest that silver demand may rise by 35% over the next five years driven by technology advancements, including AI, thus potentially benefiting silver-focused investments and stocks.
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