For years, silver enthusiasts have been making predictions of spectacular future prices, due to a combination of low silver supply, economic demand, advances in technology and the heavy debt carried by nations worldwide. Some point to the recent crisis in Venezuela as a sign of things to come. However, since 2011 silver prices per ounce have actually fallen by 70 percent, going from about $50 ounce to around $14 an ounce by the end of 2018. This has discouraged many, prompting them to sell their positions in silver. But below are some reasons why the low silver price shouldn’t be of concern.

Paper Silver Contracts Are Suppressing The Price

A lot of so called silver investors are actually speculators. They get into silver for a short period of time to turn a profit, and when they do or don’t, they quickly sell. Research indicates that there are far more paper silver contracts in existence than the actual ounces of silver, and this result in a price that is much lower than it should be. True silver investors buy and hold for the long term, and do not concern themselves with silver’s dollar price since the USD is a fiat currency that does not reflect silver’s true value.

Silver Is Less Rare Than Gold For Now

Silver and gold are the world’s most popular precious metals, so comparisons between them are frequently made. Silver has more functional industrial uses, which over time likely means that it will increase in value, possibly surpassing gold eventually. But in the near term, gold is more rare than silver, with its occurrence being at 0.004 parts for each million, whereas silver is 0.07 parts per each million. Until this changes, gold will carry a higher value.

Silver Supply Is Mostly A Byproduct

About seventy percent of the world’s silver is a byproduct of zinc, copper and lead production. As such, its price is heavily influenced by it. Each year, just over six hundred and seventy million ounces of silver is mined. The current price of silver will support continual production for a time, but has also reduced demand for additional mining investment.

Nations Are More Indebted Than Ever Before

The fundamentals of the global financial system have not changed. Most major nations are deeply indebted. The USA currently has a debt of over $21 trillion, and both Europe and major Asian powers such as China and Japan also carry huge amounts of debt. A system based on debt and fiat currency is unsustainable, which is proven by the hyperinflations of Zimbabwe and Venezuela.

Those who own silver have tangible wealth which is immune to inflation and which will maintain its value over time. The dollar price of silver per ounce is unimportant, and many silver investors have no intention of ever converting their silver back into dollars, as they would be trading an asset of intrinsic value for fiat currency which has none.