This cloud has a silver lining.
November 30, 2010 – When will the spectacular performance of gold and silver investments finally cool down? According to most experts, the answer is not any time soon. Both the gold and silver markets are accelerating as faith in fiat monies continues to fall.
Silver began its ride on gold’s coattails, giving investors of lesser means the opportunity participate in one of history’s most lucrative bull markets. Then silver took off on its own in September experiencing extraordinary growth. The question on many investors’ minds is whether the growth is sustainable or just another of silver’s infamous spikes.
Probably it is a little of both. Record sales of the 2010 Silver American Eagle bullion coin and a 22% increase in sales over the past year of silver coins in general could indicate a consumer bubble. But many experts contend that there has never been a better time for collectors of silver coins, indicating an expectation that current prices will hold over the long run.
Regardless, consumer demand, even though it is at a 25 year high, is only part of the picture. New technologies, such as solar energy, rely heavily on silver and have driven up industrial demand by some 18%. As these new technologies move towards full production, industrial demand for silver is certain to grow.
Some experts predict consumer demand for silver will cool in 2011 but that will be offset by other drivers and the market will continue to grow. Other experts see no end in sight for the rush to buy gold and silver and predict that prices will continue to grow at today’s feverish pace.
Thanks to gold and silver investments, today’s dark economic cloud has a silver lining.
Senior Staff Writer – GoldSilver.org