Gold and silver are two precious metals that are one of the most invested in options by customers despite its unpredictable nature when it comes to guaranteed returns. However, this does not stop individuals from investing in this metal. Gold is more commonly procured but as of now, silver is also quite a good investment option.
Metal stocks for the current year have crushed markets and it was silver leading the fray which is quite unusual as it is gold that always leads the change.
The main reason individuals invest in gold is because they either hope for prices to continue increasing or they believe that their other investments will decrease in value. Although precious metals have their practical uses, their value is unpredictable. Purchasing gold and silver is good for those who have a good risk appetite. These metals generally move in directions that are opposite to the market. Generally the price of precious metals are known to increase as these metals have limited availability, but this trend cannot always be predicted.
The price of silver is currently soaring but there are other factors at play as well. The price of silver per ounce was over 5% as compared to 1.6% of gold. Currently, the price of spot silver is at its highest. There is currently a strong demand for both these metals and this is one of the reasons contributing to the increase in prices. Economic uncertainty from Europe, China and the United States of America has led to investors purchasing gold and silver which generally moves in tandem has also benefitted from this low yield and uncertain environment.
The demand for silver has also further been boosted by the need to increase the usage of solar energy as silver is one of the most important components of solar panels. Silver is a very good conductor of electricity and heat and the solar industry itself accounted for 6% of demand for silver in the year 2015. Over the last decade, this industry has grown by over 53%. Therefore silver miners and investors are reaping rewards from the same.