At the end of 2010, silver prices increased an unbelievable 70% in only four months. Global investors today are predicting that silver will be at record-high levels by the end of 2011 or into 2012. If you are contemplating buying silver, now may be the time to do so if you have not already. After all, even if prices increase only slightly, you will still get a return on your investment if you sell your silver when the cost is higher than what you paid for it. However, many investors choose to never sell their silver because of the intrinsic value of this precious metal. The question remains€what is sending the price of silver to record heights?
One important aspect that is driving silver prices up is due to a decrease in supply. In 1900, there were about 12 billion ounces of refined silver in the world. In 1990, the amount had decreased to 2.2 billion ounces. Today, there are fewer than 300 million ounces of refined silver in the world. The reason for this decline is due in part to the fact that silver mined today goes into technological devices, photographic equipment, and medical tools. Plus, some of the greatest producers of gold like China, India, and Russia discontinued the exporting of silver though their stockpiles have decreased greatly as well.
While the supply of silver declines, the demand for investment opportunities is on the rise. This leads to an impressive increase in silver prices. In 2007, the price of silver hovered around $14 per ounce. As of the middle of 2011, it is about $34 per ounce. Predictions have been made which state that silver is expected to hit $50 per ounce before the end of 2011. After that, there is no telling just how high the prices of silver could get before they finally begin to decline.
There are rarely no-brainer investment opportunities today, but when it comes to investing in this precious metal, nothing is more obvious. It is incredibly easy to invest in silver with online vendors, and if you find a wholesaler offering silver at a lower cost than standard retailers, you can save even more on your purchase. Secure your investment today in the form of coins or bullion before silver prices skyrocket even higher. When the predictions of price increases come true, you will be glad you made your investment sooner rather than later.
