As the stock and real estate markets struggle to stay afloat, and the US dollar continues to devalue against other major currencies, precious metals, especially silver, may very well provide attractive opportunities to investors looking for a safe haven.
Second in acclaim to gold, silver is one of the major previous metals on earth today. Like gold and other precious metals, prices of silver does not hinge directly on promises from a nation’s government and federal banks. The value of silver lies mainly in the economic factor dictating supply and demand. This foreseeable and predictable economic factor offers many fundamental investors a safe haven from inflationary pressures and the depreciation of currencies. Silver does not only provide unparalleled protection in today’s turbulent financial markets, silver also offers investors a terrific opportunity to protect and enhance their wealth.
Although silver has not always been in the limelight the way gold has been, one important detail remains true till today – Silver is scarcer than gold, and this is a fact. With that being said, we now have to look at the demand for silver and how this would affect the price of this precious metal.
Although silver has had far more productive uses than gold, silver has often been overlooked and ignored by most investors who are drawn more emotionally to gold. Gold does have its gravitational points – Dazzling luster and as a hedge against inflation and market instability. However, just like gold, silver also does act as an economic hedge. Other than this, silver also plays a critical role and has a growing demand from the industrial sector, technology, energy, electronics, and manufacturing. All these sectors form the bulk of annual silver demand, and have substantial affect on the price of silver. Silver also does have considerable cost advantage when compared to platinum, which is very similar in composition.
Silver’s superior properties also make this grey metal highly sought after in the medical sectors. Silver is antimicrobial and dilute solutions of silver nitrate and other silver compositions are utilized as disinfectants, often used in the electronics sector, cleaning of jewelry, and water purification processes.
New uses for silver are continuously being found in all sectors worldwide. Above ground, silver is scarcer than gold, and the reason for this is the fact that almost every unearthed ounce of silver goes immediately to industrial use. This makes silver the single most useful element on earth today.
Source by Baron J. Woods
Silver Investments - Why Silver Prices Are Set to Soar
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