Silver Poised for Rally as Interest Rates Fall and AI Demands Surge
Silver’s shine could grow even brighter in the coming years, according to Peter Krauth, author of "The Big Silver Bull." Speaking at Montreal’s Xplor 2024 conference, Krauth painted an optimistic picture of silver’s future, spurred by a confluence of factors including falling interest rates, a potential recession, and the burgeoning field of artificial intelligence.
"What I’ve studied is how money reacts once the Fed starts cutting interest rates," Krauth explained. He emphasized that the impact of these cuts should not be underestimated, citing historical data as evidence. "[This] period could take between one and two years, but these are big results, these are not just estimates, these are numbers you can verify.”
Recession Could Fuel Silver Demand
Adding fuel to the fire, Krauth anticipates a possible recession in the U.S. during the first half of 2025. While this might seem disconcerting, history shows silver strengthens in such periods. Research from Incrementum, he noted, analyzed past recessions, revealing that silver outperformed other investments both before and after recessionary periods.
"As we emerge from the recession," Krauth stated, "the U.S. Treasury Department will be looking for ways to stimulate economic growth, and as we have seen in the past, the best options often require massive investment in technology and infrastructure."
A Silver Lining in Green Tech and AI
Krauth sees silver playing a crucial role in financing this green transition. Think electric vehicles, solar and wind energy, and the charging stations that support them. He also highlighted the advancements in silver-based solid-state battery technology, underscoring its importance in this sustainable future.
"Silver is a key element in all these developments," he explained.
But silver’s potential doesn’t stop there. Krauth predicts artificial intelligence could become a major driver of silver demand.
"Artificial intelligence," he emphasized, "is directly linked to technology and solar energy."
Krauth explained that the microchips essential to AI technology heavily rely on silver due to its excellent conductivity. Moreover, the vast amounts of data generated by AI require significant energy to store and process.
"The amount of data expected to be produced in 2025 will be 50% higher than all the data produced globally between 2010 and 2016," Krauth pointed out, noting, "Even using ChatGPT consumes ten times the energy."
While tech giants like Microsoft, Google (NASDAQ:) and Meta are considering nuclear power for their data centers, Krauth suggests other companies may opt for solar energy.
"For companies that need a lot of energy to run their data centers," Krauth argued, "solar energy becomes an obvious choice. Yes, you need large areas to build solar parks, but permits can be issued faster than for nuclear energy, and it provides electricity easily, allowing data centers to operate semi-autonomously."
He added, "If you have enough land to build a data center and a solar park next to it, you can be completely off the electricity grid, ensuring the energy independence of the data center."
Black Friday Offer:**
"Take advantage of the discount now and catch stock market rally with tools to determine fair value and analyze earnings reports through Click here**"
A Promising Future for Silver
With potential catalysts ranging from interest rate cuts and a possible recession to the booming fields of AI and green technology, silver’s future seems exceptionally bright. As Krauth’s research suggests, investors should keep a close eye on this precious metal in the years to come.
2024-11-29 11:39:00
#historical #fact #shows #increase #precious #metal #behest #Federal #Reserve #investing.com
## Silver’s Luminous Future: A Q&A with peter krauth
**World Today News:** The price of silver has been seesawing in recent months. Yet, financial expert Peter Krauth, author of “The Big Silver bull,” believes a significant rally is on the horizon. Krauth recently spoke with World Today News at the Xplor 2024 conference in Montreal,laying out the factors driving his bullish outlook.
**WTN:** Peter,you’ve publicly stated that silver could be poised for a significant rise.What’s driving your optimism?
**Peter Krauth:** Several crucial factors are converging to create a perfect storm for silver. Firstly, the Federal Reserve is likely to begin cutting interest rates in the near future. My research,based on historical data,indicates that silver historically performs exceptionally well during periods of interest rate cuts. This impact, while sometimes delayed, is undeniable and substantial.
**WTN:** How long do you anticipate this period of falling interest rates to last?
**PK:** It’s difficult to be precise, but based on historical precedents, we could see this phase extend anywhere from one to two years. It’s crucial to remember that these are not mere estimates, but verifiable trends supported by concrete evidence.
**WTN:** You also mentioned a potential recession as a contributing factor. doesn’t a recession typically signify economic downturn and thus negatively impact precious metals?
**PK:** While it may seem counterintuitive, history tells a diffrent story when it comes to silver. Research by Incrementum, as an example, has shown that silver consistently outperforms other investments both leading up to and following recessionary periods.
**WTN:** What makes silver so resilient during economic uncertainty?
**PK:** It’s a combination of factors. Silver is seen as a safe-haven asset, similar to gold, but with greater industrial applications. This dual nature adds a layer of stability during turbulent times.
**WTN:** You’ve talked about interest rates and recession. Are there any other factors influencing your prediction?
**PK:** Absolutely. The burgeoning field of artificial intelligence (AI) is creating a huge demand for silver, a key component in many electronic devices. As AI technology rapidly develops and expands, this demand will only intensify, further bolstering silver’s price.
**WTN:** What advice would you offer investors looking to capitalize on these trends?
**PK:** Silver is highly likely to experience significant growth in the coming years. While I wouldn’t recommend putting all your eggs in one basket, incorporating silver into a well-diversified portfolio could be a wise move for investors seeking long-term growth potential.
**WTN:** Thank you for sharing your insights, Peter. What are your concluding thoughts on the future of silver?
**PK:** I firmly believe that we are on the cusp of a new silver bull market.This is a unique opportunity for savvy investors to position themselves for significant returns. keep your eyes on silver, it’s about to shine brighter than ever.
