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Silver prices have been steadily increasing over the past couple of years. The price of silver has increased about 84% this year after which up another 20% in 2011. According to analysts, the need for precious metals continues to increase later on. If you're planning on investing on coins, then you definitely should do it now prior to the prices get excessive. The more you wait, the smaller the profits you get from purchasing silver. If you do not think that the cost of silver will only still increase in the future, read this listing of some of the explanations why the price of silver is continuously rising.
Explanations why Silver Prices Are Rising
For decades, central banks happen to be selling their reserves of silver to meet up with excess demand. This has kept silver prices low for several years but it also made mining unprofitable. Consequently, there is now a shortage of the mined capacity of silver developing over the next two to four years.
The majority of the mined silver is consumed for industrial purposes. Therefore, the majority of the mined silver is consumed quickly rather than being stored. Silver is a previous metal that has a store value quality similar to gold, but it's used being an industrial metal. This gives it a good value in growing industries such as chemicals, computers, and mobile phones.
Since World War II, america government who has sold over 5 billion ounces of the rare metal. The U.S. government currently has no reported silver kept in storage.
The above-ground available stores of gold have by 600% since 1980, as the above-ground available stores of silver have decreased by 90% since 1980.
Silver prices are also rising because starting and operating a mine costs a lot of money. A substantial silver mine needs requires about ten million dollars (in some instances it could need 100 million dollars) in capital to get started. It takes approximately 3 to 5 years for a single silver mine to make a tremendous amount of silver.
The majority of the mined silver did not come from silver mines. It's found while mining for other minerals like zinc, lead, copper, and gold. Therefore, silver isn't the focus of new investments in the mining sector. Only 30% of mined silver originates from silver mines. They're very few because there are few places that can sustain silver mining.
Silver has countless industrial uses in the current modern economy. IT is utilized in water filtration, wound care, healthcare, solar energy, mirrored glass, DVDs, mobile phones, smartphones, tablet computers, and computers. It is also used like a catalyst for chemical reactions to be able to produce products for example plastics.
Silver is the preferred metal through the average investor once the prices of gold tend to be more than $1000 per ounce. When gold prices increase, silver becomes a good substitute for investment for gold because of its less expensive and its similar qualities.
