Is silver at a stable price or is it going higher ? Is there a shortage? Whats causing the demand ? Your thoughts please.
If anyone could answer that question - we'd all be rich Unfortunately we can't The primary reason for the increases in the gold & silver market has been due to the dropping value of the US dollar. It's not that gold & silver has been going up - it's just that a dollar now buys less of it. In other countries - metals prices have remained mostly stable & virtually unchanged.
Silver like gold and platnuim is a precious metal. During times of recessions (down turns in the Economy) people tend to turn to them as a safe investment. When stocks and bonds are losing money, people buy these metals more frequently causing demand which drives up the price. A gold or silver bar can not go bankrupt like a business can. Thats why recently silver has been up and also like GDJMSP said inflation does not help either. Reverse is true when the markets and economy are good.
Also I should add that rumours and speculation can drive prices up, but this gain is quickly lost if the rumour is proven to be false. Although if you time the market right you could make some money, but do NOT base your investment portfolio on it.
