Why Silver Prices Are Higher Than Ever?

Though silver is looked upon as secondary or 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 to manufacture 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 gold and more margins to go higher on prices soon. This trend is triggering the prices of silver higher than ever.

Moreover, the value of the US dollar is dropping day by day. US weak economy is driving many investors to invest in the precious metals market. Many governments of major countries worldwide are now buying stocks of precious metals than buying US dollars.

And so silver prices are expected to go higher than ever as the US dollar continues to become weaker and other investment options give lower interest rates!

Leave a Reply