Silver

1. Definition

Silver acts as both a precious metal (store of value) and an industrial metal. * It has the highest electrical and thermal conductivity of any metal, making it essential for electronics, solar panels, and batteries.

2. Key Characteristics

1. Hybrid Nature: It reacts to monetary factors (like Gold) but also to industrial demand cycles (like Copper). It rises during inflation but also during economic booms due to manufacturing demand.
2. High Volatility: The silver market is significantly smaller and less liquid than the gold market. This leads to much sharper price swings ("Gold on steroids").

3. The Gold-Silver Ratio

• A metric used by traders to determine which metal is overvalued or undervalued relative to the other.
• $$Ratio = \frac{Price\ of\ Gold}{Price\ of\ Silver}$$
• A historically high ratio suggests Silver is undervalued relative to Gold, often triggering a "Buy Silver" signal.

4. Investment

• Often called "Poor Man's Gold" because of its lower price point per ounce, making it more accessible to retail investors.
• Critical component for the Green Energy transition (Photovoltaic cells for solar energy).