Silver made simple

Silver Predicted to Strengthen

2009-05-20T21:22:00.001-07:00

Analysts are continuing to predict that silver could not only outperform stocks and property investments but may well outperform gold in the coming years. This doesn’t take away from the value of other investments but means that silver could see a greater increase in value in relative terms.

Some are predicting a price rise in similar proportions to the last five to ten years during which period the price of silver has tripled.

If this is the case there can be no doubting the investment potential of silver.

Silver Looks Set to Outperform Gold in 2009

2009-05-07T07:05:00.000-07:00

Financial reporters and financial analysts are predicting that silver will outperform gold during the last six months of the year, as demand for silver as an investment compensates for the slump in industrial demand.

The relative value of silver compared to gold had weakened towards the end of 2008 but has been recovering since the beginning of this year. At the start of 2009 the price of silver was approximately 9.5% higher than at the start of 2008. On the other hand, the price of gold is now slightly lower.

Early predictions are indicating that silver prices will continue to strengthen through the year.

Is silver the new gold?

2009-04-08T07:49:00.001-07:00

For decades consumers have sort to invest in gold but the consistently high price is now leading investors to reconsider the potential of silver – not simply as a material to be used in jewellery but for its investment potential as a store of value.

The argument that silver may outperform gold in the next few months was backed up by recent news that India, traditionally the largest importer of gold, imported no gold in March 2009. This trend could easily be repeated in other countries over the coming months as people continue to feel the pinch during the global economic downturn. The recession could see investors turning to gold’s poorer cousin, silver.

Additionally, silver will continue to be in demand not only because of its investment potential but because of its industrial uses. The demand for silver in industries, such as photography, is estimated to account for 65% of global supplies, that’s approximately 895 tonnes. For gold the industrial and dental demand is much lower. About 11% of supplies are used by industry and dentistry – that’s around 3,880 tonnes.

However, there isn’t much doubt that part of the increased demand for silver will come from investors. With gold prices still near $900 an ounce holdings of exchange traded silver funds are expected to rise.

Investing in silver

2009-04-06T06:06:00.000-07:00

Whilst silver doesn’t quite have the same cache and charisma as gold it still has solid investment potential. Silver has been valued since ancient times as a precious mental and has been used to produce ornaments, jewellery, cutlery and currency coins.

Although as a general rule, silver prices tend to rise and fall inline with gold there are other factors which govern the price of silver.

For example, industrial demand for silver has grown consistently for the past three decades and is key to the way that silver behaves.

Silver has huge industrial appeal because of its unique properties, including strength, malleability, and ductility. It is an unparalleled electrical and thermal conductor and has the ability to withstand huge temperature fluctuations.

Silver plays a big part in conventional photography and so some impact has been felt with the rise of digital imaging but its uses are varied and constantly developing. It’s also used in mobile phone and solar power technology and in medicines.

It is likely that the price of silver will strengthen during the global recession as consumers look to less expensive investments. Financial experts are suggesting that now could be a very good time to invest in silver bullion.