Since the global economy has taken a turn for the worse, investors around the world have begun to recognize silver as a legitimate investment class. As a result, silver and other precious metals have become more accessible through a variety of investment vehicles. Even so, many investors are choosing to own silver the old-fashioned way by buying silver bullion coins and bars. Indirect options include exchange-traded funds and derivates.
Since it is more convenient and safer than ever to purchase silver through reputable precious metal dealers, it has become increasingly mainstream to diversify one’s financial portfolio with a good portion of this white metal. As the beginning of 2011 proved, many investors took advantage of short-term profits by selling off their precious metal investments. However, the subsequent drop-off in precious metal prices led many people to take advantage of the lower prices for silver and gold. Now, many investors are setting their investment time horizon several years ahead.
Projections for end-of-year value for silver averages over $50 a troy ounce. In the previous decade, the value of silver increased, on average, 27.5 percent every year. In 2010, the value of silver skyrocketed 80 percent. This dramatic boost to the silver price is due to increased demand by the combination of industrial, technological, and investor sectors.
While silver is used as a hedge against economic instability, it has the added advantage of being supported by demand in the technological and industrial sector. Hence, the long-term goals set by a growing number of contemporary investors around the world. As has been proven in recent years, even when certain applications for silver diminish, such as its demand in the field of photography, several new applications are developed to create an even greater demand. Photovoltaic solar cell technology and iPods are just two of countless innovative applications that rely heavily on silver.
Buying silver is no longer viewed as a crapshoot, but as a reliable investment opportunity. This sentiment is shared by the central banks of several governments who have been trading in paper currency assets in return for precious metals. For instance, the central bank of China has been using gold and silver as monetary assets and is encouraging its citizens to do the same. Investors on both sides of the Atlantic are placing their faith in precious metals as dependable stores of wealth. Even occasional price setbacks have not discouraged worldwide investors from buying silver and hoarding this solid commodity in order to secure their financial future.