The recent imposition of Trump tariffs has sent shockwaves through the global economy, and according to Peter Krauth, a renowned precious metals analyst, the silver market is one of the sectors poised to benefit the most. In an interview on CapitalCosm, Krauth discussed the potential for a silver bull market, fueled by inflation, rising interest rates, and the impact of the tariffs.
Krauth, who authored the book "The Great Silver Bull" and publishes newsletters on silver investing, sees the current economic climate as strikingly similar to the 1970s when silver prices skyrocketed amidst high inflation. He argues that the Federal Reserve's policy of keeping interest rates near zero for an extended period has contributed to the current inflationary pressures and that recent rate hikes may not be enough to control it.
Krauth emphasizes silver's potential as a hedge against inflation. "Silver performed very well in the 1970s, and I believe it has the potential to do the same again," he said in the interview. He cautioned that silver is a volatile investment, but suggested that investors who understand the market and are prepared for volatility can potentially profit from it.
Volatility Creates Opportunity
"People are well advised to know and expect that [silver] is going to be volatile," Krauth said. "It's going to be more volatile than gold, and if you talk about silver stocks, that's another you know, it's exponentially more volatile." However, he continued, "It's the volatility that brings the opportunity."
Krauth suggests that new investors in the silver market should wait for an opportune moment to enter. "If you haven't participated in it and they see a spike in a run-up and now they feel, I've missed it well if it was very exciting and very fast you can almost be guaranteed it's going to correct," he said. "Maybe it's not a bad idea to wait a little bit to let things calm down."
Silver's Potential Returns
Krauth pointed to historical trends to illustrate silver's potential returns. He cited instances where silver prices tripled within a few years and mentioned companies in the silver space that witnessed gains of 16 times and 17 times their share price within a two to three-year period.
While Krauth's perspective offers a bullish outlook for silver, it's important to remember that this is not financial advice. Investors should always conduct their research before making any investment decisions.
Watch the full interview:
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