Determinants of the Current Silver Prices

Current Silver Prices

The last few weeks have seen the price of silver plummet to an unprecedented low, falling by a drastic 34% in three days. Consequently, series of panic buyings triggered large scale purchase of the metal was recorded in most parts of the US.

The ongoing speculation of an emerging recession in Europe and America is apparently responsible for the unstable current silver prices 2012.

The current silver prices quotient indicates the fact that this precious metal bears an industrial character.

Likewise, the price for metals such as copper, aluminium, lead, zinc, platinum and palladium also met a similar fate as traders withdraw interest in the face of profitable prospects. As per industry experts, a further fall in the current silver prices per gram is predicted in the not so far future. On the other hand, since the silver market is comparatively smaller than that of gold it has a higher tendency of amplifying gold’s movement. In simpler terms, the rise and fall of the current silver prices per ounce is complementary to gold price.

For many years on, the demand for silver has been increasing in the industrial sector, investment sector and consumer markets. It has a wide range of use in jewelery, tableware, utensils, electronic items and other equipments. This surging demand has created distension between the total amounts of silver available for mining and the supply capacity.

What silver to buy?

Irrespective of the fact that the current silver prices have recorded a slide over the past few years and the current live price tagged at $30.75 USD, the existing price fluctuations have failed to deter the value of investment in silver metal among investors. From an investors’ business perspective buying silver at the spot price (market price) as bullions, coins, rounds, bars or biscuits stand as agreeable means.  Even though buying silver eagles and Canadian maples are costlier most investors prefer stocking them over others.  But, if you are considering buying silver bars then bigger bars are better bet to offset the premium. In addition, purchasing smaller bars or biscuits usually prove to be poor investment option as they attract higher premiums.

Silver bars of over one kilo or silver rounds offer smaller premiums, and they do not take long to regain the loss incurred on the premium paid.

Lastly, the current turbulent scenario over the recent economic sharp fall globally has heightened the prices of silver and gold leading to hundreds of traders opting for investment in these precious metals in the form of coins and bars. This trend is seen as a respite against the declining stocks or the equity markets.

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