Silver is too linked to economic cycles
Silver prices suffer in down-turns
There is a widely held belief that because silver has many commercial uses, it is therefore an industrial metal only and heavily exposed to the health of the economy.
Whilst silver is indeed incredibly useful in industry, silver is used in so many applications that are deemed essential to our lives, or at least not discretionary purchases.
During down turns, demand for water filters, medical dressings and other essentials products tend to remain consistent. At the same time demand for less essential products, such as mobile phones and electronics, has shown great resilience since the Great Financial Crisis of 2008.
It is the result of such silver investment market trends that make silver’s industrial demand far less vulnerable than one might naturally assume. Many silver investing analysts actually argue that silver’s industrial demand is very robust to changes in economic cycles.