After a disappointing year in terms of performance, silver will attract investors' attention in 2022. The fact that the gold/silver ratio is around 80 points suggests that if the gold price is to rise, silver will at least follow and may even overtake gold.

Furthermore, silver will benefit from the strong performance of other commodities and its status as an industrial metal, which plays an important role in the transition to renewable energy.

As Peter Schiff of Euro Pacific Capital points out, "To put this in perspective, the average gold/silver ratio in the modern era is between 40 and 50 points. This means that, in historical terms, silver has been extremely undervalued relative to gold. And at some point, this gap should close. If this gap closes again, we can expect another big rebound in silver.

Throughout 2021, the metal has suffered from supply chain problems and rising energy costs. But in 2022, the industrial component of silver will contribute to another rebound, once supply chain issues are resolved.

This will also be helped by the increased demand for silver consumption from the renewable energy sector. The Silver Institute predicts that by 2022, the silver market will be in a supply deficit situation, due to rising industrial demand and the global drive to eliminate the carbon footprint.

Demand for silver related to vehicle electrification, 5G networks and government commitment to 'green' infrastructure is expected to increase over the next few years.

According to Bank of America, demand from the solar PV sector alone will increase from 2,900 tonnes in 2020 to 8,550 tonnes in 2030.

Source: Oro Informacion