Gold Has Good Competition As An Investment With Silver

It appears that Gold has taken the spotlight in investment circles. Some don't see silver as a potentially money making investment, instead see it as metal used for jewelry and dinnerware.. However, history shows that silver has been a medium for storage of wealth for thousands of years and valued one civilization to the next. The Greeks to the Spaniards have employed it to mint coins. In the United States silver coins widely circulated until 1965 and so did silver certificates which were exchangeable into silver coins.

Silver is also a widely used and sought commodity for manufacturing and industrial purposes.. It has the highest electrical conductivity of all metals and its ductile and malleable. It has been used in electronics, mirrors batteries, photography and numerous other ways. It has been this trade that has had the most weight on the price since the late 1960’s.

Now, however silver has become a prime metal traded in the financial markets.. As markets have developed, futures and ETF’s have had a larger impact. This change in this markets have allowed speculators to participate in silvers price movements. It seems that the news these days is centered on the possible price manipulation of the precious metal. The argument is that the price would be much higher without the intervention, but it also shows that silver is becoming more important in many ways.

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. This has been witnessed by the increased demand for the silver ETF,SLV, which has caused the issuance of new shares by the custodian who in turn must buy physical silver.

The current economic uncertainty has also played a role in the demand for silver as more investors have bought it for wealth protection and capital appreciation. This has increased the demand and its price. This trend will most likely continue as the economy faces increasing and renewed challenges.

Conditions such as scrap silver becoming valuable again are a sign of the current silver market situation.. 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.

It is obvious that silver along with gold should be a precious metal that is included in one’s portfolio that seeks wealth protection and capital appreciation. Analyzing the precious metals from a technical and fundamental basis reveal that now is a good time to be invested in these precious metals.

By: Mike Early

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Investing in the precious metals such as gold and silver is not only a decision that could make you substantial amount of money as history shows, but more importantly will afford you wealth protection in economic uncertain times.