Dateline Feb. 28, 2016: Silver and gold prices have risen through the first two months of 2016. Is silver bullion value poised to rise even more from here? Probably so, according to an article by Moe Zulfiqar published recently in Profit Confidential. He suggests that the price rise is just beginning and could skyrocket. A number of factors are contributing to this scenario. Let’s summarize Moe’s reasoning on the potential move in silver price:
Silver Demand is On The Rise
Investors in 2015 and so far in 2016 have had a voracious appetite for silver bullion coins, with sales surging at the mints across the globe. Sales of US Silver Eagle Coins have been very robust throughout 2015 and so far in 2016. This year will be another record year for silver sales at the US mint if the current trend holds.
In addition, sales of bullion coins at the Royal Canadian Mint and the Australian Perth Mint are also strong, much higher than equivalent periods a year ago.
Silver also has important uses as an industrial metal. It is malleable, ductile and can stand extreme changes in temperature. It is used in batteries, dentistry, LED chips, medicine, nuclear reactors, photography, semiconductors and water purification systems, among others. It is increasingly important in the development of solar technologies.
Of course, probably the way most people think of silver is as a main component in jewelry. Silver rings, broaches, necklaces and earrings are common in most every culture across the globe, especially in some of the world’s most populous countries.
Silver Production is Waning
Despite the increase in demand, by investors, jewelers and industrial concerns, the amount of silver being produced from mining activity across the globe is decreasing. In the US, silver mine production dropped by roughly eight percent in the first 11 months of 2105. In Canada, silver production has suffered a year-over-year decline of more than 22%. Similar declines are occurring outside of North America as well.
When supply become scarcer, prices will go up if demand stays the same or increases.
Get Your Silver Bullion Here
This looks like the sweet spot for buying silver while it is still at a reasonable price. Demand is up and supply is decreasing. Indeed, silver appears poised to rise.
Don’t forget about Amazon. The world’s largest online seller does a robust business in precious metals. Because of their high sales, you can acquire silver bullion at very low prices from them.
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