The Future of Silver Investing for 2012

It is certainly easy to get excited about silver investing, especially in light of what has been happening with precious metals as of January 6, 2012.  Silver price has increased to nearly $30 per troy ounce.  Why the change, especially considering how grim silver price looked last week?

There are a number of factors, including a recovering U.S. dollar, good financial news from the U.S. and China, bad news from Europe and India, and a generally peaceful week of business.  However, some news sites like Money Control at CNN believe that the primary reason that silver has increased is because of increased tension between the U.S. and Iran.  In fact, since Iran shut down the Strait of Hormuz, thus limiting the world’s oil supply, oil prices have increased substantially.

You also have to factor in the New Year in silver investing, which many investors actually wait for so that they can start making purchases again.  Silver could actually increase a great deal in price over the first two quarters of the year, depending on what happens on the worldwide scene—politically as well as financially.

Analysts are predicting growth for gold and perhaps a new peak, as various economies move closer to recession.  Nevertheless, the London Bullion Market Association is not quite convinced that all metals will go up in price, since gold is a special commodity purchase that seems to follow recession.  Some experts are actually predicting a fall in silver price, though the metal is predicted to surpass the $30 mark, which is higher than its current price.  

It will be an interesting year to say the least since so many factors are potentially devastating, such as the collapse of the euro or the franc, not to mention the volatility of the U.S. dollar.  However, we do know that silver investing is always a smart move, since you merely concert your funds into precious metals.  You can also easily purchase silver coins or bars and not be slapped with a huge fee, since silver is more affordable by the ounce.  There are some very beautiful silver coins available today that do not cost that much more than bullion price.

Silver benefits from a good economy and very often accelerates in recession, even when it’s supposed to be market-dependent.  One thing is for sure: silver is not going to lose its value anytime soon.  In fact, some U.S. states are already making it legal tender!  Talk to a coin dealer today about expanding your silver options.