What is the latest to happen with the silver market? Silver market price is currently at $30.08 per troy ounce, which is a slight drop from earlier in the week (as of September 29, 2011). The 4.5% drop in price resulted after further news of European financial woes and the rising U.S. dollar. Silver decreased in price, as did gold. This is actually an optimistic move, considering that gold accelerates during times of recession. Gold fell 2.1%, and the fall of these precious metals is no doubt thanks to dollar liquidity issues.
Basically, what is happening is that banks are desperate for U.S. dollars over in Europe, as the euro is taking a beating. The PIIGS crisis is taking its toll, and yet another bailout is going through—which is a significant risk to the overall price and value of the euro. The reliability of the U.S. dollar is actually helping to consolidate or “control” the demand for precious metal coins and bullion.
Over the latter part of summer, gold especially increased in price, and this undoubtedly helped to keep silver retrained around the usual $30 PTO mark. Whenever investors panic and buy up gold bullion as a hedge, they tend to avoid silver, a market friendly metal. Silver has set records over the past few years (particularly the top selling American Eagle in silver series) still doesn’t change the fact that investors are either banking in dollars or buying up as much gold as possible.
However, silver is still retaining value, and it is easily more trustworthy and market-valuable than the U.S. dollar. What about silver investment? Is it a good idea now, when both gold and silver appear to be faltering in price? Yes it is, because silver doesn’t actually decrease in value—only the demand for silver decreases. The only way that silver would actually lose value is if the world abandoned it as a precious metal. Highly unlikely, given that there is limited silver supply left (arguably less than gold) and that paper currency is quickly losing its reliability.
Silver is not only visually appealing, thanks to its luster and fineness, but it is also a metal valuable in industry. Therefore, expect silver to increase—if not suddenly—then gradually as the world changes. Now is your chance to start buying heavy silver content in coin and bullion form, as the silver market is cheap, starting at just $30 PTO.