Silver and other commodities; a good hedge to the current geopolitical situation and hyper inflation.

Stocks are crushing, crypto is volatile, but commodities are going up. The financial market is cyclic, hence the importance of understanding the change in cycles and to have a well diversified portfolio.

If your not looking into crypto as a hedge to the collapse of the current financial system, then you should be looking at commodities like physical silver coins or silver mining stocks, physical gold coins, or copper and uranium mining stocks.

What we are experiencing now is hyperinflation . Commodities are historically known to be a good store of value for wealth in cases of hyper inflation because of their rareness.

In practical terms if there’s a consistent CPI annual inflation of 7% basically it means that in 5 years you lose 35% of your buying power.

Silver and Gold do not lose value because of their rareness. Based on history and economics, metals have always been used as a hedge against the loss of value of other currencies. The great thing with Silver is that if we are faced with the worst outcome, its not only a store of value but you can actually use it as actual money to pay for your daily amenities.

Here is a Macro view of the target prices Silver will aim to reach in the next couple of years. That is in the range of a 500% increase.

You are probably wondering ..why Silver? Yes silver is a highly used industrial metal, its the second to oil most highly used commodity. Use cases are solar panels, electrical vehicles, batteries and so on. Currently there is high demand and this will be the case in the future with the rising EV and go green industries.

Demand for silver is high and the metal has been operating on a deficit for years.The current consumption amounts to about 1.3 Billion ounces a year while production is at 800 million ounces a year . This demonstrates a 3 million ounce deficit.

Its difficult to know where the new world order is headed, but its important to stay ahead of the game and if there should be a worst case scenario…then commodities could be the lifeboat investment.

Not financial advice, only for educational purposes!

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