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Considerations for Buying Silver as an Investment


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Trends in Buying Silver as an Investment

buying silver as an investmentFor decades, gold has been the investment of choice, but in recent times, the value of silver has considerably risen, causing investors abroad to instead look into buying silver as an investment. Some speculate that the silver investment market will surpass gold as the superior precious metal to for which to invest. The value of gold has been on a steady increase for at least ten years; silver prices have increased three-fold in just a few years to an all time high and are predicted to stay on a steadily inclining pattern.

Buying Silver as an Investment through the Years

As with most commodities, the price of silver correlates with supply and demand and is driven on the supposition of investors. Since September 2005, silver prices have been on a steady increase, at first being around $7 per troy ounce, doubling only seven months later. In early 2008, it was already hovering about $20 per troy ounce, but later plummeted in late 2008 to only $9 per troy ounce, as did other precious metals in respect to the economic conditions at that time. Steadily inclining since, in early to mid 2011, buying silver as an investment was the talk of the market, as silver had risen to its highest in 31 years, at $49.21 per troy ounce.

Buying silver as an investment to obtain long-term financial stability might be uncertain, but looking at recent history has many investors jumping on the buying silver bandwagon. Playing the market has made many wealthy. Back in 2001, the price of sliver was at an all time low of just over $4.06 per troy ounce. Patient investors with a notion then saw an amazing surge occur in the proceeding ten years, a reward for their fortitude to hold on. Predictions hold high for the next year, 2012, that silver will again reach an all time high. Making predictions on wise investments is difficult, and as with other precious metal commodities, buying silver as an investment is no different.

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