The price of gold has refused to decline during the past year, soaring to heights previously unknown. Asia and large institutional investors continue to represent large sources of demand. Any small declines from other markets are overshadowed by these large numbers of buyers. We are headed into the highest period of demand for gold, from a seasonal perspective.
The success being experienced is not limited to the precious metal gold. Silver is also having a great run and things continue to get even better. This precious metal is viewed as a safe haven asset, just as is gold. What distinguishes silver is that it is also used for industrial production purposes. This causes it to trade like crude oil, copper, and other commodities that are sensitive to economic fluctuations.
In recent days, very depressing manufacturing and employment figures have been released. These have caused people to worry about another dip into the recessionary pool. This fear has resulted in falling prices of crude oil and stocks. During this time, silver has held strong, a very impressive feat considering all of the doom and gloom. On Wednesday, the silver price reached a two-month high of $18.39 per ounce. This pleased, and surprised, many on Wall Street.
Silver has represented incredible price strength in the face of these adverse conditions. If economy slips further in a negative direction, the price of silver should continue to increase. This bodes well for those with investments in the precious metal considered “the poor man’s gold.”
Individuals who have not made silver a part of their investment portfolio may want to do so before the price rises even higher. With many economists predicting a double-dip recession, individuals will be well-served to have some holdings in physical silver. Though prices have recently shot up a bit, silver is still much more affordable than gold.
Source: Hunt, Brian. DailyWealth. A Major New High For Silver.