Silver has been on a roll lately, going from $18 an ounce up to $29 in less than two weeks. However, over the last few days it has fallen by more than 15 percent. Is this something that investors should worry about? Below are some reasons why volatility of silver is nothing to fear.

Silver’s Bull Run is Just The Beginning

Silver has the distinction of being the only precious metal that is still priced at two figures. Gold, platinum, and palladium are all priced at three or four figures, and when you consider the fact that silver is rarer and has more industrial uses than these other metals it doesn’t make sense that its price has remained so low for so long.

Many investors are fooled by silver’s low price per ounce. In their minds, its low price must mean it has little value, while gold, platinum and palladium’s higher price must mean they have greater value. This is simply not true. Warren Buffet and Charlie Munger, two of the greatest investors in the world, have openly criticized gold, saying it is primarily useful in times of war or chaos, while silver is where true value lies. Buffet put his money where his mouth is, purchasing over 100 million ounces of silver back in the 1990s. If the world’s greatest investor tells you that silver is more valuable than gold, and purchases one hundred million ounces, what does that tell you?

The World Is Awash In Multiple Problems That Will Not Subside Anytime Soon

Geopolitical tensions are rising in every part of the globe. Most of the world’s largest economies are awash in extreme amounts of debt that are mathematically impossible to pay off. Many experts have started calling it the “everything bubble” since almost every asset class, whether it be real estate, stocks, bonds or derivatives is in a bubble, everything except silver.

The world’s response to the coronavirus pandemic has been horrific. Entire countries have shut down their economies and borders over the virus, without stopping to consider how its citizens will make a living. This has led to massive unemployment, which has prompted governments to print trillions in order to the pay the bills of their citizens, devaluing their own currencies in the process. Anyone who understands basic economics knows this arrangement is non-sustainable.

Silver Is Already Outperforming Gold

So far in 2020, silver has outperformed gold by a substantial margin. While GLD has gone up roughly 35 percent since March, silver has shot up by over 100 percent, even after the recent drop of 15 percent. What this means is simple, silver is still massively undervalued, and has a long way to go.

In fact, many silver investors believe that investing in the metal today is comparable to investing in Microsoft in the 1980s, Google in the 1990s or Amazon in the 2000s. Its return potential is that incredible, but even better, since silver is a physical metal that can be held and traded whereas Microsoft, Google and Amazon were only available in the form of stocks. When you consider the emerging technologies that will demand silver, its potential is almost unlimited.