The price of silver

by goldbullion on 03/03/2012 - 01:29 pm |

Tags: Metals Investing, Silver

The price of silver

For thousands of years, silver has been used as a convenient way to store wealth and as a trusted form of currency.  Silver and gold have traditionally been the two precious metals used in this manner.  Silver is still a popular commodity, especially among those who wish to secure their savings against future changes in the value of their countries' currencies.  Its low value relative to gold makes it far more affordable for the average consumer, and many national governments mint silver coins in order to sell them to its citizens and raise revenue.
 
Potential buyers should keep a close eye on the current market value of silver before buying silver bullion. The price of silver, much like the prices of other commonly-traded commodities, fluctuates with supply and demand.  Silver's market price as of February 2012 is around $33 per troy ounce.  The trends in both silver and gold prices have a very loose relationship with each other because they are both popular stores of wealth, and the ratio between silver and gold prices is commonly tracked by investors interested in precious metals.
 
The price of silver has held on a general upward trend for the past ten years, rising from around $5 per troy ounce to over $30 per troy ounce in the current market.  The value of silver has risen partly because of its high demand as an alternative store of wealth in these unsure economic times.  Many investors holding serious concerns about the fate of fiat currencies such as the Euro have sought refuge in precious metals, and consequently, the price of silver has risen in recent years.  Silver prices do fluctuate, but the long-term investor should feel secure in the fact that for four thousand years, silver has been a trusted, valuable and highly versatile commodity.

 



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