Silver Down on Mixed Economic Cues
The tumultuous global economic climates have been weighing down on the price of silver.
The tumultuous global economic climates have been weighing down on the price of silver.
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.
While silver prices made moderate gains on the day, uncertainty about the global economy continues to erode investors risk appetite. Some analysts have even called into question silver’s role as ‘poor man’s gold’ as a hedge against inflation.
The silver market is experiencing strong downward pressure along with most of the commodity markets as traders struggle to find anything positive coming out of the bleak macro economic outlook in the United States and Europe.
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?
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.
The price of silver has been making steady improvements over the last month since the downgrade of US debt sparked concerns of a second global economic slowdown since 2008.
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.
Silver’s price slipped on the day, but a looming economic slowdown may support the metal. Silver Investing News spoke with William Rhind Managing Director of ETF Securities, about the recent market volatility and the effect on the price of silver.
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?
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