Though silver is looked upon as secondary or a metal with lesser importance than gold, many people don’t know that silver is far more in demand for its industrial usage.
It is required for manufacturing of the latest technological gadgets right from DVDs to cellphone batteries, from motors and super-conductors to high-end microprocessors. Due to its industrial usage, the metal will always remain in high demand. Since the stocks or mines of this metal worldwide are comparatively less, the metal is rare to find. And so, the metal’s prices will always go higher and higher.
Another major factor that affects silver prices is the interest rates as low as 0.25%. Hence, due to low interest rates, people are now moving their money to investments in precious metals. And, as gold is already at $1500 and silver not even at $50, the investors are now buying silver which has lower prices than that of gold and more margins to go higher on prices in near future. This trend is triggering the prices on silver higher than ever.
Moreover, value of US dollar is dropping day by day. US weak economy is driving many investors to invest in precious metals market. Many governments of major countries from around the world are now buying stocks of precious metals than buying US dollars.
And so silver prices are expected to go higher than ever as US dollar continues to become weaker and other investment options give lower interest rates!
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