Silver, considered by some to be the ugly cousin of gold, has made some great strides in the past fiscal year. While silver may never reach the prices that gold commands, there is more silver in circulation, making it easier to obtain, trade, and invest in.
And the picture for silver is, in fact, becoming very rosy. Just this past week, after spending a month below $20, silver’s value has reached over $20. And experts agree that it has yet to reach its upper limit. Conversely, a drop in silver’s price is not expected. According to a report from Capital Trading Groups, silver may have risen on the back of gains in the gold market.
Also, whenever you deal with precious metals, you must also be aware of the political climate in the nations in Africa where the majority of these metals are mined. The hot topic this week has to do with mining wage negotiations in South Africa. When the miners go on strike, no precious metals are pulled from the earth, sending a ripple effect throughout the entire precious metal market.
Several experts in the field of silver – Silver Investing News, for one – have analyzed the data and have forecasted that silver prices have hit bottom and on their way up.
Several silver mining companies like Silver Mountain Mines, Eurasian Minerals, and Tahoe Resources have begun surveying and sampling several promising silver mining sites, assuring that silver will remain an accessible resource. Silver remains a very valuable and growing commodity.
So let us get down to the price: beginning past week, silver was priced at $19.84. By the afternoon of that same day, it had risen to $20.53. Later in that week it had moved as high as $20.58. The pattern is clear: while prices may dip occasionally, the overall trend is upward.
Much like gold, silver is seen as an excellent hedge against inflation. And here are two more reasons that silver makes an excellent investment:
1. An uncertain economy could actually increase value. Silver is still a safe haven investment because it is a physical commodity, unlike paper currencies which are much more susceptible to the dips and rises of the markets.
2. Commercial traders are into silver for the long haul. This means that silver could possibly be in for bullish reversal, sending prices even higher.
