An international buying spree, or flight to safety by global investors, saw silver prices breach 30-year highs on Sunday at $33.30 an ounce.
Emerging economies of China and India are both heavy consumers of the metal, which is used in jewelry but also has its use as a raw material for industrial use.
Silver is now up 22.28 per cent in the past 30 days and according to data, has more than doubled in the last one year, trading as it was at $16.24/oz on February 27, 2010. Compared with this, gold prices have gone up by just a little over 6 percent in the past 30 days and the yellow metal is up by just 27.75 percent in the last one year. This is now leading to precious metal analysts to argue that silver will see much more appreciation in the months to come.
The factors which will keep silver going up are - Heavy international demand, financial instability and political unrest across the world, and silver mines which are getting drier day by day.
In other words, silver will be new gold for “Aam Aadmi”. Even use of gold in jewellery will be replaced by silver as gold will be out of rich of common man. (As nowadays platinum is used very rarely compared to gold).
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