It is not a secret that silver is much better long-term investment than gold. This is attributed to the more diversified use of the white metal, its current low price and optimistic future prognosis.
Investing in silver futures for the short term has certain risks which could be positive or negative – almost like gambling. If you are a safe-player investor type, than consider the physical silver investment opportunities.
Bearing in mind that the long-term takes an extend of more than five years, placing cash assets into physical silver is a step which is positively proven by several factors and has almost no risk.
In September 2011, the metal’s price soared to $50 and analysts still speculate with that data. The significant here is that this bullish market then, was not a tendency, but a single day phenomenon and it affected only the contracts for future delivery. On the physical silver market the traders were purchasing silver at about $35 per ounce while selling the commodity at $50 per ounce. It is important to stay calm and think in perspective, because one-day events are called incidents and they mean nothing to the long term period where the physical silver rules.
Firm evidence can be found in stable market factors that benefit the silver bullion prices trough the future periods.
A growing need of the global industry will always support the physical silver price as securities cannot be used for water purification, solar-power generation, coin emissions, specialized medicine and other important sectors.
Other factor is the leveling of the gold/silver ratio. Based on historical statistics and the rebound of gold, the silver value is seriously underrated.
The reelection of Barack Obama as US president is expected further to support the devaluation tendency of the US currency. As the monetary stimulus continues, the price of precious metals, such as silver is expected to rise during the US president’s second mandate.
And the last and most recent driver for physical silver prices is the limited supply of silver. The silver shortage is phenomenon which doesn’t concern metal deficit in general, but the traders’ attitude to buy and not to sell. Despite the massive mining production, the demand of large industries grows and the metal stays in the hands of investors as they look for safe heaven. This market machination is expected to cause in boom in physical silver prices as investors are buying for the future.
Meanwhile, physical silver investments look appealing as ever. Gold became very expensive for the majority of retail investors and demand lowered significantly during the past months of 2012.
On the other hand, silver market manipulation and liquidity could be frightening for many investors. Yet, physical silver is safe as ever, despite the tight price growth. The possession of physical precious metals such as silver is a safe mode to efficiently store long-term value and protect assets from inflation.
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