Sunday, January 30, 2011

Will Silver Move Higher?


Some people out there think that precious metals are now in a bubble, as people are using precious metals as a substitute for more traditional investments like stocks, bonds, mutual funds, and even real estate. 

Many of those investments are tied directly to the fate of the US dollar, which is currently plummeting in value and shows little signs of regaining it anytime in the near future. But is the precious metals market done? While gold has reached all time highs, silver has not, and that is worth noting and paying attention to. If you consider that many folks are investing in silver you have to ask yourself why? If you haven't been living under a rock the past few years you will know that your money is practically worth less than it was the day before.

Silver may actually be undervalued right now. The economy is still unstable, and looks like it will be that way for awhile. There is also growing demand for silver to be used in industrial applications. Lastly, the outcomes of the silver price manipulation investigations are just coming to light, which will definitely influence the silver market.

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