Silver Investments

Five-Year Performance of Silver


Silver has seen both historic highs and lows in price since 2007. Expertsexpect silver to hit an all-time high at some point in the near future, thoughsilver’s notorious volatility makes it difficult to pinpoint when and if thatwill happen. Despite its relative volatility, silver production has increasedsteadily since 2007 as has the means by which the world gets it. Mexico,who has recently drawn praise globally for its commitment to growth inmanufacturing, has unseated Peru as the world leader in silver mining.

 

Silver: 2007 and 2008 Performance


2007 High: $15.82 Low: $11.67

2008 High: $20.92 Low: $8.88

Silver prices in 2007 were on average lower than prices in 2008, 2009 and2010. Each year after 2007, the prices seemed to get slightly better. During2007, silver production was expected to increase by 3.6 percent, whichequaled a 23-million ounce increase.In 2008, we saw nearly a 2 times increase in demand for silver coins andmedals, while overall the world demand for silver fell. It’s use in just abouteverything besides coins had fallen. Silver saw a consistent downwardtrend for the last six months of 2008, which is likely attributed to the globaleconomic crisis in the US. This can also explain the growth in investment oftangible coins and medals.

 

Silver: 2009 and 2010 Performance


2009 High: $19.18 Low: $10.51

2010 High: $30.50 Low: $15.14

In 2010, the overall silver production rose by 2.5 percent. Mexico andArgentina drove most of the demand. The two mines together produced739.5 million ounces. Peru was once the largest silver producer, but Mexicoemerged as the leader in 2010 as previously mentioned.Additionally, coin sales increased during this time period but did not accountfor the most silver demand in 2009 and 2010. Over 30 billion ounces wereproduced during this time period. Over the course of 2009, Silver saw itsbest yearly gain since 1979. In 2010, silver grew by more than 60-percentthroughout the year.

 

Silver: 2011


2011 High: $48.70 Low: $26.16

 Experts predicted silver prices to reach nearly $50 an ounce in 2011,however the price fell just shy of that number. In 2011, silver productionwas expected to increase by one billion ounces. The number marked a24.9 million ounce increase from the previous year’s production. Refinedsilver supply increased by nearly 40 million ounces. This was in part due toelectronics markets expansion in developed countries.Despite record highs for the metal in 2011, it closed out the 2011 with itslowest price all year at $26.16 an ounce. There were quite a few differentimpacts to drive the market down on the global level. The downgraded creditrating, unrest in the Middle East, trouble in the EU and Greece’s economiccrisis, all created an unstable market. Silver is among the more susceptibleto panic, uncertainty and emotion.

 

2012 and Beyond


 Silver opened 2012 strong compared to a less than stellar close to 2011.Speculators are once again estimating silver could reach $50 an ounce.Worries of the Greek crisis impacted both the price of silver and silver futuresin early February 2012.