subject: Silver Is A Good Investment For The Long Run [print this page] Most of the talk these days centers on Gold and Gold Investing. Some don't see silver as a potentially money making investment, instead see it as metal used for jewelry and dinnerware.. However, history indicates that silver has been a medium for storage of wealth for thousands of years and revered one civilization to the next. It has been widely used in mintage of coins from the Greeks to the Spanish. In fact, silver coins were in wide circulation until 1965 and silver certificates were also exchangeable into the precious metal.
Silver has qualities which also make it a sought after industrial metal. Is is malleable, ductile and has the best electrical conductivity of all metals. It uses have ranged from electronics to photography and many other uses as well.Up to the 1960's this was the main driver of its price.
Silvers evolution has extended to the financial markets. As markets have developed, futures and ETFs have had a larger influence. This change in this markets have allowed speculators to take part in silvers price movements. It seems that the news these days is centered on the possible price manipulation of the precious metal. This only goes to show the importance of the metal and that in a free market the price would be much higher than it actually is.
Since 2003 the trend for silver has been up as result of inadequate supplies and better investor demand.. During this period mine output, supplies and new finds have either been stagnant or declining. Demand SLV the ETF for Silver has been rising thereby out pacing supplies of available shares, forcing the custodian to issue new shares and in turn buy more physical silver.
The financial and economic uncertainty which we are witnessing has also amplified demand for capital appreciation and wealth protection.. This has increased the demand and its price. Current news events once again reflect increasing economic uncertainty which should translate into continued strength in demand and price for silver.
Scrap silver has become valuable again which speaks as to the current market condition. Silver appears to be regaining its luster as a metals for wealth protection. Investor will demand more and increase the competition for the metal with industrial sector. The final result seems fairly obvious since the metal supply is in limited supply.
Both both capital appreciation and wealth protection, investing in gold and silver appear to be good choices. Both technical and fundamental factors indicate that it is and good time to invest in gold and silver.
