Silver as an investment

buying silver

Although specialists differ on their silver predictions for silver in the year 2013, there is a general agreement that the precious metal will increase in price by early 2014. In the recent past, the predictions for the value of this precious metal have been arrived at by numerous factors. These factors consist of the strength of the US dollar in addition to the cost of other precious metals like Gold. This year, as the US economy recovers from recession and with ever-increasing industrial growth, it appears that investors are finding silver much more appealing than Gold.

[silverpredictions.net silver as an investment]

One of the fundamental factors that should notably push the industrial demand for this precious metal is the ever-increasing economic development, especially in developing countries, one among them being China. A few analysts project that the demand for industrial silver will increase by up to 7 percent in 2013. And if this occurs, demand by investors will without doubt intensify, pushing the prices higher. An increase in industrial demand may also come through the motor industry, because it has been projected that there will be a substantial increase in automobile manufacturing, and especially luxurious vehicles.

Throughout the first few several weeks of the year, silver forecasts have been as low as 28 dollars per ounce. These figures could be an indicator that the price of silver will reach its all-time low, but according to analysts, these prices are just showing a downward trend and are set to shoot up. This is a well-known trend, bearing in mind that futures do languish at really low prices before surging strongly in the upward trend.

Concerns about the discrepancies between the cost of silver and silver mining shares will still be there in 2013, as there is still a difference. But is it's worth noting that these discrepancies are at the lowest they have been in over thirty years. It has been argued in the past that one reason for this is the facts that increase in demand have been majorly centered in the investment sector and not the industrial area. If this is true, then the difference is going to reduce further this year since it is projected that there will be an increase of up to seven % in industrial demand for silver. Nevertheless, according to some pundits, it doesn't matter where demand comes from. By the third quarter of 2013, the price of silver is projected to hit a high of not lower than 40 dollars an ounce, something that will provide mining stocks with an opportunity to enjoy the profits.

silver ira

Although most silver forecasts are optimistic, it is vital for an investor to play caution when choosing to invest in Silver. First, are you buying physical silver or just promise papers. For first time investors, it is highly recommended entering the market by purchasing physical silver first. Also, long-term projections for silver prices may be somewhat grim, bearing in mind its demand and supply as well as the demand and supply of alternative precious metals like Gold. Enhanced strength of the dollar and consequently, improved investor confidence in the US Dollar might have some negative impact on the price forecasts for precious metals in the long term.