Why do Experts Predict Silver Prices could Reach $500 an Ounce?
Experts believe that silver prices are expected to rise over the coming decade due to the current economic situation. Many people are seeing how the federal reserve is printing money like there is not tomorrow, and watching their currency depreciate in value. The value of currency is indirectly proportional to the amount of money in circulation. Therefore, when mass amount of money is printed, we will see inflation skyrocket and silver prices as well as gold price rates also increase.
Reasons why Silver Price is Expected to Increase
There are several reasons why experts believe silver prices are expected to increase over the coming years. One reason is the devaluation of the currencies around the world including the EURO and then followed by the devaluation of the United States dollar. Another reason why silver prices will rise is due to the limited supply of silver and the extraordinary demand for silver. Silver is one of the best conductors of electricity and is used within solar panels and cell phones. Silver is widely used industrially and is increasing in demand. While at the same time, supplies are limited. In addition, there are some economists that say that silver and gold may one day be used as currency again. This will result in an increase in the price of precious metals.
Silver The Poor Man’s Gold
Silver has skyrocketed 100% over the past 5 years as people see the value of the paper currencies drop and are looking for a less expensive option outside of gold. There seems to be a divide among the experts on whether to invest more in gold or silver bullion. Some experts believe that the gains in owning silver bullion will be triple the gains that could be earned by investing in gold. Some large investors have placed all their money in silver bullion expecting the price to reach around $500 an ounce over the coming decade. Many experts see future gold price hitting $3500-$5000 with some experts saying $10,000 an ounce i possible. All in all, silver is the preferred metal by top investors such as Jim Rogers.
Silver Bullion Investing Not for the Weak at Heart
Silver bullion is generally less traded then gold and therefore experience greater fluctuations in silver prices. Therefore, silver investing is not for the weak of heart as you will have to endure greater fluctuations in the heavy metal price over the coming years. Since it’s more thinly traded then gold bullion, silver prices will fluctuate more, but experts say the gains out way the risk. Since silver is greatly needed for industrial technology, we should see an increasing demand in silver, and therefore an increase in silver prices over the coming years.