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Silver Prices Today

Updated on April 8, 2012

Why invest in Silver?

In the current economic climate, people are looking for ways to secure their investments so that they keep their value and do not depreciate in value. A lot of people are investing in Gold as it has always been a secure and tangible investment. Silver is also a good option to consider when investing in uncertain economic times. Gold holds a higher price than Silver, but its growth in value is much slower than Silver, meaning that by investing in Silver you should expect a higher rate of return on your investment.

Demand for Silver is also at an all time high which pushes up the price of Silver. It is currently used in many electronic devices like mobile phones and the demand for Silver is so high it is beginning to outweigh the actual supply available of Silver.

Another note to consider is that the US Government have been increasing their stocks of Silver, which is also a strong sign that Silver is in high demand. silver prices today are higher than ever and are also set to increase in the future.

What actually drives Silver Prices?

With Silver increasing in price at a high rate you need to make sure that it is a sound investment, to understand the price gain you must first understand the key drivers of Silver prices. Here are the key drivers of price:

Demand - The current output of Silver is less than demand, as it is now used in many different industries, Mining of Silver has decreased and reserves of Silver are also decreasing. With demand being higher than output the price will rise.

Currency - If you are purchasing your Silver in US Dollars, you will pay more dollars for Silver as the Dollar has weakened in international monetary markets, you do need to understand that when buying silver there will be an element of currency exchange driving the price, the weaker the dollar the higher the price.

Investment Portfolios - A view will be taken on how investment portfolios are allocating their invesments. Most investments tend to show an average allocation of 7% of their total investments into precious metals, any shift in the averages will affect the prices, if the percentage goes up, the price of precious metals will go up as it is seen as:

1. an increase in demand

2. A confidence in the value of precious metals.

3. A Shift in market attitudes due to economic uncertainty

Investing in Silver

What are you investing in?

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