“Silver Surging: Will the Prices Increase?

Silver prices have been an area of concern for many investors, as it has displayed a wide range of volatility over the years. In 2019, silver prices experienced notable spikes and drops, leaving many investors unsure of where the price of the precious metal is going in the long-term. When trying to forecast the silver market, there are a variety of factors that must be taken into account. The most important factor, by far, is the worldwide demand for silver and the current state of the global economy. The industrial sector is one of the biggest buyers of silver in the world. Silver is used externally and internally in a variety of products, such as cars, computers, cell phones, and other large-scale appliances. In fact, industrial applications account for 85 percent of all the silver purchased in the world. If the industrial sector is doing well, then it follows that demand for silver will increase as business investors look to acquire more products that require silver for their production. Conversely, if the industrial sector is not doing well, then demand for silver may suffer, leading to lower prices in the market. Additionally, silver is a major component of trade conflict, particularly between China and the United States. Tariffs and sanctions imposed by these two major economic powers have had a profound effect on the global silver markets. If these tensions escalate, then the silver market could experience large price swings. A recent example of this occurred in 2018 when the U.S. imposed a 25 percent tariff on imports of Chinese goods, causing the price of silver to plunge. In addition to the global economic climate, investors must also take a look at the gold-silver ratio. This ratio simply looks at the value of gold compared to the value of silver. Historically, when the ratio is lower, it generally signifies an increase in the value of silver in the market. Therefore, when the ratio is low, investors may want to look into investing in silver. Ultimately, it is important for investors to do their research before making any investment decision. Silver prices can change on a daily basis and tend to be highly volatile. As such, investors should keep an eye on the global economic climate, the gold-silver ratio, and any political developments that could provide insight into the future of the silver market. With a careful and informed approach to research and investing, investors can make sound decisions about when to enter and exit the silver market.