Why Is There Such a High Demand For Silver?

Precious metals especially silver and gold are highly sought after. Whenever there is a currency downfall, the prices of silver and gold always soar. It is a perfect tool to protect an investor's holdings against inflation and a devalued currency. The increase of fiat currency into the markets is devaluing the dollar and every year billions of dollars are being pumped into the system. When this kind of environment happens, investors look to shift their money into a safe holding place. Silver is the perfect place to do that.

Globally, over the past few years during and after the recession, silver is still trading bullish in the stock and securities exchange thus making its demand and value increase steadily. A person who follows the stock markets consistently will know that the value of silver will not drop anytime in the future.

In the U.S, sales of the Silver Eagle bullion coins increased by 13.3% in December 2011 to 2,009,000 compared to 2010's sales of 1,772,000. For all of 2011, total Silver Eagle sales arose to at an all-time record high of 39,868,500 ounces, up 15.0% from the prior year's (2009) total of 34,662,500 ounces.

Silver is in high demand not only as a commodity, but also because of its many industrial uses. Silver is widely known as an industrial metal and is the best, most profitable choice in numerous industrial applications. I will go further and add that silver demand isn't going to decrease in the near future since it serves a wide range of manufacturing companies all over the world.

Manufacturing Applications Associated to the Increased Demand of Silver

As I stated above, there are industrial uses in different fields that have led to the increased demand of silver, these companies use silver for purposes like:

• Manufacturing of solar energy

• Bottled Water Purification

• Milk processing

• Rechargeable Solar Batteries

• Replacing Platinum Catalysts with less expensive Silver Catalysts

Based on these and other facts a large number of investors, who have come to terms with these findings, have shifted their investment portfolio from other bases to silver. The reason for this is because they have seen that the old adage of "when demand is high, so does the cost go higher" and are literary reaping massive benefits from their silver investments.

The same manufacturing companies are also contributing to the higher demand of silver since they're buying of big chunks of silver and stocking these chunks thus creating a shortage and ensuring that the prices soar. By the end of 2011, silver demand rose so high that an ounce of silver was trading for $30 in December. 5 years prior, the price of silver was approximately $12 an ounce.

Extensive Outlook Term for Silver

Looking at the future of the price of silver, it looks immensely bullish for silver, and investors should earn enormous rewards from this metal. Some analysts and investors see silver being the investment of the decade. If you look at all things that we are using nowadays, almost all them are somehow linked to silver, this point should confirm the reason why silver is the metal to invest in since its demand is continuing to soar!

By Emilio G Boy

Emilio Boy is a member of ISN (International Silver Network). ISN is the newest network marketing company focused on the precious metals market. Learn more about becoming a member of ISN and owning your own online coin store by clicking HERE.

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Ultimate Silver Value Guide

Are you looking at diversifying your investment portfolio? Are you wondering if silver is a good vehicle to invest on? Whether you are starting your portfolio or you have been investing several years understanding the world of precious metals, knowing how the price of silver is changing is exceedingly important. If you are you interested to know what drives the price of silver in the international market, you have come to the right place. Following are important facts that you may want to know about the silver price. These pieces of information will come in handy as you go along your investment venture.

Spot Price Of Silver
If investing in silver and other metals, you will certainly come across the term spot price. But what does spot price of silver mean? A spot price is actually the value quoted for an immediate agreement of payment. It is a good guide to use and figure how much silver is worth. Then again, it is important to know that there are other defining factors that will influence the silver price. For example you are investing in coins, the general condition, the year the coin is minted are important information to care about. Investors pay for silver coins not because of its monetary value but also because of its historical value. Moreover, other factors that can affect the spot price of silver are opening and closing of silver mines and economic conditions.

Factors That Affect Silver Price

Supply And Demand
Presently, silver is showing a more positive profit than gold. Many experts believe that it is due to the concept of supply and demand. Silver is probably one of the most functional metals around. It is being utilized by a number of industries which include electronics, medicine, dentistry, coin production and fashion. With the increasing demand of electronics and other gadgets that contain silver, the supply of this metal is diminishing. Thus, the price of silver is significantly rising.

US Dollar
Apparently, there is a significant correlation between the US Dollar and the price of precious metals like silver and gold. During inflation and economic threats, the US Dollar is losing its value and many people tend to divert their interest to precious metals which are not affected by unstable economies.

Oil Price
Based on research, oil and silver had a 0.7 positive correlation and this was evident ever since the 1960's. Though the connection between silver and oil is strong, it is not as strong with that of gold and oil which is a correlation of 0.8. Moreover, gold and silver are two related metals. Gold, according to experts is considered as the chief driver for silver prices. When the price of gold is high, silver is also on the rise.

Long Term Outlook For Silver
Obviously, the demand of silver will continuously rise especially with silver used as part of production of a number of technologies and gadgets. Unfortunately, the supply is declining. Experts believe that silver will be difficult to recover and to recycle. Having that said, the silver price is expected to rise ever before.

Silver is one of the best investment assets you can possibly make. It is cheaper than gold and platinum, making this metal very ideal to start with especially if you want to build up your portfolio fast. Before adding this metal to your portfolio, research more about silver and consider how this investment will benefit you. With the unstable economy, precious metals continue to be very promising. If it is your first time to invest in silver, you may want to start first with coins and bullion. They are less risky as compared to other forms of silver.

By Joseph C Ford

Sell Silver Coins at the maximum value? Visit the website to learn more.

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Factors That Drive The Price Of Silver

Precious metals like silver and gold has never been more popular than during the financial crash of 2007. In fact, it has become the talk of the town until now. People who were a bit doubtful whether or not they are going to invest in silver or gold are now sure of what they are going to do with their investment portfolios. Gold is the number one choice amongst all precious metals followed by silver not far behind. Nevertheless, silver is slowly emerging from the gold dusts because of so many good reasons. Now silver lovers are reaping the fruits of their investments as the price of silver continues to rise above everything.

You might ask what factors are involved that drives the price of silver in the world market. This is actually a very good question and the answers might just turn you into a silver investor yourself. Let us look at the important factors that drive that will answer this very important and interesting question.

Currency Devaluation
It is a sad but a true realization that important currencies around the world, particularly the US Dollar have suffered so much over the past years. Fortunately, the precious metal industry has remained independent of this because it is in them that currencies are actually pegged, particularly gold.

Great Demand
When the smoke finally settled in what people saw are precious metals that remained standing. Through the rubble and ashes of the financial catastrophe, silver is a proud survivor of what has happened. That is why people are now lining up to buy every ounce of silver their money will allow. Silver is actually a bit cheaper than gold but an equally wise investment. This is the reason why people who have lesser money to invest turn to silver. The greater the demand, the higher the value of the commodity as the law of demand and supply dictates.

Wide Industrial Use
Silver is not only valued when it is used or made into Jewelries. There are actually a lot of uses and applications of silver that a lot of people do not realize. Silver is used in the medical and dental industries. It is also used in the electronics industry because it is actually one of the more reliable conductors of electricity aside from gold. Silver is also widely used in making silver coins and silver coin bullion which are great investments as well. The list may go on and on proving silver is recognized in almost all industries.

Probable Shortage?
Silver, like all other precious metals are mined not made. That is why the probable shortage of silver supply is what makes it even more valuable. Now that people have been heavily affected by the financial downturn, they are starting to realize the value of silver. Everyone just wants to have a piece of it. There are even reports that even minting industries all over the world have had troubles securing pure silver to mint their silver coins. Moreover, there is no way to detect if the supply of silver is indeed dwindling.

With all of these factors, it is only clear that precious metals are the new investments to reckon with. Silver in particular has become very in demand because of its value, purity, liquidity and the ease of buying and selling it. People have started to expand their investment portfolios including silver, gold and even platinum to catch up in these financially troubled times. It is not too late to start your own investments. The factors mentioned above are real and are actually happening in the market today.

By Joseph C Ford

How to sell silver and get the best price? Get tips on how to sell silver and go to the site now.

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The Pros and Cons of Investing in Silver

There are both pros and cons to investing in silver. As a commodity, silver tends to fluctuate up when stocks are down and the economy is troubled, and lose value while the economy is in good shape. That being said, there are some reasons why investing in silver, no matter the state of the economy, can be a very good thing.

The Pros of Investing in Silver:

• Avoid the loss of purchasing power if the dollar decreases in value through inflation. If you buy silver, your silver will increase in price as the dollar decreases.
• Silver is tangible and can be used for sale, barter or trade in case of economic collapse or massive currency devaluation.
• Silver has many industrial uses and as such is more than just a precious metal/ store for wealth. Silver is used in electronics, antibacterial preparations, clothing, technology and more. Thus its demand will continue as long as technology does.
• Silver is relatively inexpensive per ounce compared to gold and other precious metals. Thus it is easier to begin investing in silver compared to gold.
• Junk silver -- the 90% silver quarters and dimes once used as currency -- are in low enough values (for example, pre-1965 quarters are worth around $4.50 each) to be used for exchange if necessary. Try getting change for a $1,500 ounce of gold.

The Cons of Investing in Silver:

• Silver can go down in price after you buy it. Th is true of almost any investment you make, but it's important to acknowledge that there is no guarantee that silver will keep going up in value.
• Silver can't always be liquidated immediately if you need to buy something with cash. If you don't have a silver dealer in your area, or a good pawn shop or jeweler where you can trade in the silver for money, you may experience a delay between when you need your cash and when you can get money for your silver.
• Silver held in one's possession is at risk of theft even if well secured.
• Other investment opportunities -- real estate, stocks, small businesses -- may outperform your returns from silver. There is the risk that you will not make as much money investing in silver as you would in some other venture or commodity.

Despite the potential cons to investing in silver, many investors feel the pros outweigh the drawbacks and turn to silver as a safe haven for their money, a hedge against inflation, and a true investment that may see better returns than gold in the months and years ahead.

By Maria T. Miller

Learn how to buy junk silver, as well as pitfalls to avoid when you invest in silver coins and bullion. Author Maria T. Miller enjoys finding junk silver deals and collecting coins for long-term savings.

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Investing in Silver As the Silver Spot Price Rises

The silver value has soared to its highest silver spot price in three decades. So what is the outlook for silver prices, the preferred profit strategies or favoured profit plays for the rest of the year? Well it depends on which expert you talk to.

The silver price per ounce rose above $42.00 in mid-April, a 31 year high. That is up 32% for the year so far and more than doubled since last September. The question many are asking is where is it going from here, and how should one position themselves?

The consensus from many of the market professionals is that the long term outlook for silver is still bullish. But that it is currently over bought and a pullback maybe even back to $30.00 may happen. Most seem to agree that silver is likely to run up to a high of $50.00 by the end of the year, the bearish outlook says that it may take 3 to 5 years to get to $50.00.

If you look at the silver gold ratio over recorded history you find it to be between 16:1 and10:1. At 16:1 and a $1500 current gold price would indicate silver is under valued and should be trading closer to $92 per ounce. Why aren't we at that level? Either gold is overpriced or silver is under-priced or the world has changed. I believe it is the later.

Many of the current investors are looking to silver bullion as an inflation hedge, but that is really only part of the story. Not only is silver undervalued versus gold, but silver is a hedge with an industrial kicker. Silver is used in thousands of industrial processes and is in high demand. More than half of the silver being produced today gets used up buy industry. We've all seen the uses for silver continually grow in this electronics age. Thirty years ago we had a twenty year supply of silver above ground for industry. Today that supply has dwindled to less than a year's supply.

Something's wrong here, and the only explanation I can see is some kind of government or central bank manipulation has been happening for many years. That could be good for silver investors because when corrections do take place, they inevitably over shoot the equilibrium mark by a considerable amount.

There is another issue driving gold and silver prices right now that many are not aware of: gold and silver are in high demand by nation states. This is a game changer. The CPM Gold Yearbook reports the aggregate total of the number of ounces of precious metals bought or sold by nations worldwide. Since the early eighties governments have been selling. In 2008 it was predicted that 5 million ounces would be sold in 2009. The 2010 CPM Gold Yearbook shows a net purchase of 15 million ounces. This is an indication that governments worldwide are starting to distrust the value of the American dollar. And this doesn't include some countries such as Iran and China who don't report their actions but who are rumoured to be buying large quantities.

Finally, silver coins have become the "common man's metal". If you are you are looking to buy precious metals and your choice is between gold at $1500 per ounce and silver at $40 per ounce, most people are going for the $40 because it appears to be a bargain.

So has the silver chart shown that silver has moved too far too fast? Some are expecting a major pull back in price before continuing on to test the 1980 record price of $50. Others look at the 1980's record price and adjust the price for inflation and see that the spot silver price needs to go to $130 per ounce in order to equal that record. So there could be a long way to go yet, without even taking into account of the world financial situation today. I don't plan on selling any silver bars or silver bullion coins any time soon.

By Lee Coates

Silver investing is the investment that is in fashion now, but what about the longer term? Do you want to be the next automatic millionaire ®? A free 45 min webinar showing how anyone of average means just like you can become a millionaire, Click here to watch the webinar. You can also check out my blog for more wealth tips.

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What Is The Cheapest Silver Coin? Learn How To Calculate The Premiums On Silver Coins And Find Out!

The price of silver has been surging in recent days, due to a variety of geopolitical and economic factors. As the price of silver continues to rise, it is more vital than ever to shop wisely when purchasing silver bullion coins!

Unquestionably, the most popular silver bullion coin is the American silver Eagle. There are many great reasons to buy this particular coin. It is recognized worldwide, can be bought and sold very easily, and is guaranteed by the U.S. government for its purity and silver content.

However...is it the cheapest silver coin to buy at this moment? Is its premium the lowest compared to other similar silver bullion coins?

Keep reading and you'll find out...

During a precious metals bull market, to make the most money possible, you want to own as many units as you possibly can at the peak.

For this to happen, any time you buy bullion, you want to get the most silver for your money.

To achieve this goal, you always want to purchase the silver coins that have the lowest premium (i.e. that are the cheapest).

With the diverse selection of silver bullion coins that are available, how do you figure out which one is the least expensive?

It's easy!

Here is how you would calculate the premium on silver bullion coins:

1. Firstly, you will need to find out what the current bid spot price of silver is. Kitco is a great online source that I personally like to use. Additionally, most online silver bullion dealers list the current spot price prominently on their website.

2. Secondly, you will need to determine the amount each of the silver coins is selling for above the spot price of silver. Again, most reputable silver dealers will have this information posted on the page of each specific coin. For instance, a random date 1 oz American Silver Eagle coin is currently selling for $4.99 over spot at my favorite online silver dealer.

3. Thirdly, you will need to determine the % over spot that each coin is selling for, utilizing this formula:

$ Amount Coin Is Selling For Over Spot / (Current Silver Spot Price + $ Amount Coin Is Selling For Over Spot)

For example, let's use the 1 oz American Silver Eagle Coin. Please note: the prices used were current at the time this article was written.

$4.99 / ($40.67+ $4.99) = 10.9% premium over spot!

The above example is calculated for a one coin purchase. In most cases, the premiums will go down the more coins that you buy and they will vary according to each individual dealer.

Here's the catch...

It can be kind of a pain to calculate this formula on a day-to-day basis. One solution would be to set up a spreadsheet using the above formula for each coin that you want to track. Once you've set this up, you would just need to adjust the spot price of silver and coin pricing information.

It's still kind of tedious but still better than figuring the premiums on a calculator each time you want to buy.

However, there's an even easier way to calculate, track, and keep up with the latest silver coin premiums...

I've done the hard work for you!
For an up-to-date table listing the 5 most popular silver bullion coins and their silver coin premiums please visit: ==> http://BullionBargains.us

By Chrissie Goldman

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Prices Of Silver - How To Acquire Silver Below Spot Price Today

For more than 9 years ago, the American currency has been gradually faltering in value due to the reserve bank generating so much cash. The worry about that is the US is slowly becoming bankrupt by creating more and more cash which saturates the economy and drives down the spending power. You see, cash is just representational for a given value that might be attached to a material thing.

For instance, general shopping around the neighbourhood I notice everything costs a lot more than it used to, maybe even just 6 months before? To observe first hand experience of the dollar losing value, just look at the increase in the prices of silver and gold, along with other precious goods. Gold, at this time, has increased 5 fold in price today (early 2011) since the year 2001. Gold was trading at around USD $250 per ounce at that time, but is now over $1,400 per ounce. Similarly, prices of silver have gone from around $5 per ounce in 2001, to $28 today.

In April 2007 Silver just broke through the $14/ounce mark but in 4 years doubled in price. It seems both gold as well as silver have escalated to all time highs and it would seem as though all commodity prices have increased amazingly. In other words, to look at this from another point of view, the US dollar is losing purchasing power at such a worrying rate that the government will run it's deficit, I fear, into a level that could be insurmountable for a very long time to come. The US government would have to make eminently drastic cuts in the nation's budget spending on security, military services, essential health, medical and education services and so on.

All this brings me to my next point - You're probably thinking - "What can I do to hedge against inflation??"

Well, I'm glad you asked - When looking at the prices of silver, I want you to know -

How To Acquire Silver Below Spot Today??

I currently buy silver eagle coins each month and have the luxury of lowering what prices of silver I pay almost all the time. This is because I became part of a system where I can leverage my buying power, thus significantly reducing my silver buying cost. Imagine if you could purchase silver for $15, $12 or even $10 per ounce? Well, that's what I'm doing right now. And the more excited I get about this the more it grows. The system is a silver buying model which allows you to adapt referrals to your purchases, whereby receiving significant discounts off the prices of silver and free silver, significantly reducing your prices of silver per ounce. The more silver your referrals buy, the more free silver you get. Now it does require you to buy your initial allotments of silver above spot price, however with just 2 or more referrals you can be back in the range of paying below the spot price for uncirculated 1oz pure minted American eagle bullion coins. When I discovered this business I became so excited.

The greatest safety net from inflation in your long term savings goals should be to acquire silver. The prices of silver in today's market allow the "average Joe" to to get his foot in the door because of silver's affordability per ounce. Silver also has a bigger demand in the electronics world with companies which construct computers, monitors and mobile cellphones and so on. The need for silver is at all time highs, and will be well into the future - There is also a whole lot less silver in the world than gold. Then why are the prices of silver lower today proportionally, than gold 10 years ago? I wish I knew why, however my surge in the near future. It can't maintain it's unusual lows it has been in for a while.

Prices of silver today I'm sure will seem like an absolute bargain in just a couple of years from now.

By Julian Robinson

Julian is an enthusiast in collecting silver coins within an effective affiliate business model. The prices of silver are currently undervalued compared with the gold market. Learn how to buy your silver well below spot price each month, and earn a large income immediately by doing it. Get my FREE eBook "How To Buy Silver Below Spot Price" below:

My Silver Friends.

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