Silver is the most common precious metal in existence, it’s the most abundant with production numbers being much higher than those of other precious metals, especially gold and platinum. You can see that this is the case even when you take a look at the price of silver and compare it to other precious metals, but don’t rely too much on prices for determining the availability of a certain precious metals, we talked about this a few days ago, it can be used on silver, but it can’t be used on other precious metals, because we need to take supply into consideration also when formatting prices.
Supply and demand are two things that are very important to keep track of for any investor and the same thing is true for those who are investing in silver bullion, because if we are to listen to the precious metal price analysts the price of silver is gonna be on the rise in the very near future, the same being true for every other precious metals for that matter. The reason why the prices of precious metals are gonna be on the rise would be because of supply, followed by demand and at the end influenced by the politics of various different countries who are not large exporters of gold, which will again in the end influence supply and demand, be one of the factors in that puzzle.
Peru is the largest producer of silver and even tough for the past few years it has been experiencing a slow increase in the production numbers on a yearly level, price of this precious metals is predicted to rise. But there will come a time when there’s won’t be any silver left, this is only normal, you cannot have a never ending amounts of silver in the ground, sooner or later there will come a time when peak production is reached, and you’ll be recovering less and less of silver from the ground. The same thing might start happening in Peru, just like what South Africa experienced when it reached the end of it’s own record of being the top producer of gold for over 100 years straight only to be beaten and overtaken by China which is now also breathing down the neck of Peru.
China’s production of silver has also been on the rise and is now breathing down the neck of Peru. Even though on the overall production of silver has been on the rise, demand has been also on the rise, and it had a far greater increase than the production has. That coupled with the fact that the peak production of silver should be very close, makes for a very interesting price predictions. Demand for silver is on the rise for several different reasons, the main one being the economic crisis which we are currently facing and going through. During the crisis, people who are interested in buying jewelry, and people who are forced to buy jewelry for several different reasons, massively turn to silver.
Silver is much more attractive precious metal for people who do not have proper income, because of the fact that it’s cheaper. The current prices of silver which are always somewhere between 20 and 30$ per troy ounce with rare trips over the 30$ mark, are not very high which makes jewelry made from silver very affordable for people who do not stand very well financially, but who would still like to have some precious metal jewelry on their body.
Great thing about silver would be the fact that the price increase for it, even if it happens, shouldn’t be very high, and even after the increase it should still be very affordable for people of all shapes and sizes of economic incomes. This is good news, because it means that silver should still be affordable to people even after the price has experienced an increase, in which situation even the price of gold, platinum and other precious metals will also be on the rise, since not only that their production numbers don’t look very good, but demand is going through the roof.
Investors should also take note of the fact that the prices of silver are on the rise because even though the predicted change in price is small, by investing a lot into silver, by buying a lot of silver, you can still make a lot of money. Whatever you do, if you’re buying jewelry, or if you’re interested in investments, make sure to take note of silver, because it has a lot of good qualities with which we should reckon with.