With so much attention being garnered by the impressive growth of gold’s spot price, it can be easy to overlook gold’s sister metal – silver. This white metal has long been the protégé of gold, mimicking some of its older mentor’s characteristics, while still maintaining its own unique place. These days, many seasoned investors agree that silver has enormous potential and may surprise us all in the next few years to come.
Current silver prices are hovering around the $34 per ounce range, but many analysts speculate that this price could quadruple to over $120, in less than 3 years! There are a number of factors that are paving the way for silver’s upward journey, and the multitude of career investing moguls who have recently purchased their full allotted share of silver is a clear indication of what is likely to come.
Silver has long been an attractive first precious metals investment option, because it can be purchased for a low price, and the risks are minimal. Anyone who is trying to get a feel for the precious metals market, before spending a substantial portion of their savings, may feel more comfortable buying a small amount of silver and monitoring its performance. At only $34 per ounce, silver can be purchased in increments that fit comfortably into any budget.
The low price of silver makes it susceptible to price fluctuations. This can work in your favor if you watch for a dip in the price, purchase your silver, and then either resell when the price soars or hold onto it for a longer period of time, in hopes of more significant growth. This volatility may be seen as unfavorable to some, but dedicated investors are able to use this to their benefit.
Most people are not aware that the amount of silver that we have above ground and available for commercial and industrial use is substantially less than gold. Most of the silver that has been mined is currently being used in industrial settings, and can never be recovered. This scarcity is another one of the driving forces behind the renewed interest in this precious white metal.
As I said, silver has many of the same properties as gold, like malleability, conductivity, and ductility, but at a fraction of the cost. For this reason, silver has become a mainstay in the electronics industry. It is quite clear that technology is only going to keep becoming a more prominent part of our day to day lives, which is why we can logically assume that the demand for silver is going to continue to soar.
Photography, medicine, jewelry, tableware, and coinage are just a few of the many other fields that count on silver every day. There is no doubt that as this finite resource decreases in quantity, the demand and price are going to shoot up at an incredibly quick rate. Those fortunate enough to have purchased silver when the price was significantly lower will reap the monetary benefits.
To learn more about why silver could be the new gold and how to add this noble metal to your financial portfolio, contact one of the helpful and informative representatives at Monex. With over 40 years in the business, you can trust that you’re in good hands.