Silver suffered a sharp setback in early trading Monday as the market reacted to the Bank of Japan’s move to devalue the yen. Investors and traders will be monitoring the actions of other central banks, such as China which many anticipate will loosen its monetary policy by the end of the year.
The rise in precious metals investing by our readers and the fact that silver’s investment popularity is now on par with that of gold are both very much in line with the developing trends we are seeing in worldwide gold and silver investing.
Silver Investing News had the opportunity for our own short Q&A session with Dr. Michael Berry, publisher of Morning Notes, who will be speaking at the world-renowned Silver Summit Investment Conference and will host a “no holds barred” Q&A session following his presentation.
Safe haven demand has left the precious metals market and headed over to the US dollar and Treasurys as Eurozone economic woes are expected to further strengthen the greenback. But, the US is itself still embroiled in a financial crisis. How much longer can the greenback remain king?
Silver's outlook may not be as bright as that for gold and image may be one of the main reasons why.
Prices for commodities such as crude oil and copper have been hit by fears that demand may suffer due to the ongoing European debt crisis and signs of economic slowdown in Asia; with the majority of demand for silver coming from the industrial sector it’s hard for the white metal not to get caught up in concerns of slowing global economic growth.
Despite the risk inherent in a volatile market such as silver, many investors still find the white metal an attractive investment as it has the potential to bring far greater return on investment. The ROI for silver can surpass gold exponentially, as price movements over the last year have shown.
India’s 2011 Monsoon Season may have a significant impact on silver prices in 2012. A healthy crop season would mean robust demand for physical silver from India’s rural farmers, contributing to a strong price rally in January through April of 2012.
Silver’s ability to efficiently conduct electrical and thermal energy makes it a key raw material in solar energy applications. Recent reports show that the future of silver demand may be in part tied to the development and growth of the clean tech and renewable energy markets.
The current economic climate in the western hemisphere is reminiscent of the 2008 Crash and the understandable fear that we’re heading into the Great Recession 2.0 has investors seeking safe haven assets. What will happen to silver prices if the current economic crisis spirals into a repeat of 2008?
Tuesday, November 1, 2011