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Silver 2015: Factors that affected silver prices last year

Silver 2015

For millenniums silver was considered a top luxury. Нowever in the recent times silver was named the stone of poor men and very quickly the personal interest to this metal was changed in favor of gold

But the basic principles of modern silver market promote high demand on silver that give an opportunity for successful investments in it. It is not big news that in a stagnant economy money are inlaid exactly in gold and in silver. During the crisis times silver prices rose sharply together with gold. In recent years though the price-adjusted and the year 2015 closed with prices just above the $13 mark.

In fact in a period between 2009 and 2012 prices on precious metals grew notedly, especially silver prices - 160 % increase. Investments exactly in silver are considered profitable, because during the foremost economic and financial crisis, it is an ever more optimistical base.

Silver 2015: Factors that affected silver prices last year

Though 2015 has not been a good year for silver prices, demand on silver swiftly grows. There is a lack of mining possibilities of silver and with the increase of demand, humanity exceeds the booty of silver every year beginning from 1990. So silver is in short supply. America in the past was a leader on the booty of silver and multimillion supplies cheapened silver.

Because of its quality and many another reasons, silver market has always been attractive for new investments. The power of the dollar and falling oil prices led to difficulties in selling the metals spectrum in the last 3 months of 2015. At the end of December silver was worth a bit over 13$ which was caused by speculative short investments; later on the silver price returned to normal rate. For example unbeatable sales of Eagle coin by the US Mint and demand continues to grow. Record imports were recorded with India and Asia.

On the background of falling stock prices and bonds and oil oversupply, silver looked undervalued. Despite the popularity of silver and silver articles sales have fallen by more than 70%.

Analysts predict that the economy is once again turning in the downward spiral. And silver together with gold will be on the high rise. Some claim that silver price will reach a high of $50 per ounce in the next 5 to 7 years thanks to inflation and declining economies with constant political and military instabilities over the world.

Finally, silver lost over 15% of its value in 2015, but the current macro-economic situation gives a strong lead to possible long investors that silver remains a cheap and right choice of allocating money in the upcoming time. The bears have pushed the price of silver to its lowest lows in years and if there is a breakdown below the $13 mark it may continue. But the majority of analysts are predicting a U-turn and it may just be the right time for you to jump on the wagon of bulls. But for now, unless you see a strong trend it is advised to stay on the sides on watch in which direction the ball rolls.

By Chieffinancing 25.07.2016

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