Financial advisor Matt Badiali is a man who has made a name for himself for his ability to spot a profitable natural resource investment. His over twenty years of experience as a geologist taught him that one must examine an investment in person. He has personally traveled all over the world examining mines and oil wells for numerous companies. He currently is the editor of the newsletter Real Wealth Strategist. Some of the individuals who have followed his advice have boasted of triple-digit gains. However, his recent investment pick for his subscribers is silver, which over the past few months has performed horribly and many may wonder why he is now so bullish on the metal.
Matt Badiali says that the main reason for the weakness in silver prices is that the US dollar has been strengthening. A strong dollar will typically mean weaker commodity prices, and silver is no exception to this rule. Citizens in the emerging market economies are experiencing major inflation and losing purchasing power. They are trading in their currencies and buying US dollars, which is adding to dollar strength. Silver prices hit $14.15, a low not seen since 2015. The weak price action in silver is also discouraging investors, who are instead choosing the dollar. Matt Badiali does admit that further dollar strength could keep silver from rising for a while.
Matt Badiali also feels that cryptocurrencies have prevented the precious metals from rising. Many investors have become critical of the easy money policies of the Federal Reserve and the increased debt in the financial system. These investors would have chosen tangible assets like gold and silver years ago but are now choosing the cryptocurrencies as a new alternative.
Even with all the headwinds that silver is facing, Matt Badiali believes that silver is going to be a good investment. The demand for silver continues to grow and it is necessary for our modern way of life. He states that the gold to silver ratio hit eighty-four. A high ratio indicates that silver is currently undervalued. There are some analysts who believe that silver will hit triple digits in the years to come.