Pure Gold and Sterling Silver
A monumental rise in the price of gold has taken place since 2001, increasing to five times its 2001 value. Looking at current data, it is obvious that silver has not only kept pace with gold, it has recently outperformed the gold market. During the timeline from the start of 2009 through the end of 2012, the price of gold rose by 90%. By contrast, the price of silver increased 160% over that same period. Pulling back to the extremely bullish 1970s market, investors have seen silver prices in excess of $50 per ounce. In a silver market that is more bullish at present than it was in the 1970s, the price of silver as of 9 April 2013 is only $27.93. Compare that value to the predictions of experts in silver as a commodity, and an enormous field for continued growth comes into view.
Demand versus Supply: Silver Continues to Climb
The demand for silver around the globe is rising; at the same time, the supply of silver is ebbing. Adding to that demand and further depleting silver resources is the use of silver in the hi-tech industry. International demand has outstripped new silver production perennially since 1990. Above-ground stockpiles are diminished yearly due to the ratio of demand over supply. The imbalance between demand and supply is doing more than merely cancelling out worldwide stockpiles. That imbalance is further driving the price of silver skyward, opening the door to a sizeable profit for investors who are keeping a keen eye on the silver market.
Acting as a catalyst for price changes in the commodities market, the U.S. government in past years, saw fit to pour billions of ounces of silver into the global market at a much-reduced level. This governmental action caused the price of silver to plummet. The once over-flowing silver stockpile of America has now been completely depleted; and the U.S. has been transformed into a silver commodities purchaser. The situation of demand for silver overshadowing the supply, the cessation of silver dumping by the U.S. and the further depletion of the silver supply through increased hi-tech use of this metal have all merged to set the stage for silver as an exceptionally favorable investment, both short term through Binary options and long term.
Trading Silver Yields Benefits
Online trading provides accessibility and convenience that is impossible for land-based traders to duplicate. Various silver trading entities make the purchase and sale of silver bullion and coins an easy and comfortable experience. They provide up maximum leverage and a range of value-added benefits. There will always be durations of vast fluctuations in the silver market. While these fluctuations are occurring, silver options become a stable short-term trading source. There are many tried and trusted approaches to safely investing in this high-yield commodity. Financial advisers continue to urge investors to look into diversification of their asset portfolios by investing in a wider range of currencies, commodities, indexes, binary options and the like. Of paramount importance in a highly volatile market is the need to carefully assess the impact of related socio-political developments in global hotspots.
Posted On 13 Mar 2015
, By marcus