PAMM Analysis: Increasing demand for silver

Market trends suggest that the demand for silver has drastically decreased. However, silver is trying to maintain its influence over industries. It is a precious metal for safe investment. This might be because of its counterpart, gold, which is much dearer than silver, and it can also combat economic issues of life. However, everybody can’t afford to invest in gold. That is why people have started investing in silver.

At present, China is emerging as a huge market for silver. Michael Montgomery said that the demand for silver would keep on increasing in China. It will not decrease in the upcoming days. Montgomery believes that an industrial requirement is not only a reason for the soaring demand for silver.

Chinese, especially people who belong to the middle class, think that purchasing silver coins is the right investment option that can provide security for increasing inflation and the economy. To reduce increasing inflation, banks in China are trying to raise the interest rate. The rate of interest has already reached up to 6%. According to market surveys, the silver import is going to quadruple in the upcoming days. It will reach up to 30% in Indian and Chinese markets.

Silver bullion is a new trend in the US market. It has got huge popularity among those investors who are not able to invest huge money in gold. After watching the market scenario, the US mint has manufactured over 20 million silver coins for 2011. Fortunately, the demand for silver coins has also increased.

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