Silver is set to be the most highly prized precious metal in 2011. Commodity analysts believe that both industrial and investment sectors will continue to strongly support the silver price, which is currently above $35 per ounce. As a result, investors around the globe continue to buy silver bullion as a reliable financial diversification tool.
As people become increasingly disillusioned with paper currency, many are seeking refuge in hard assets such as silver. Gold has typically stolen the show when it comes to precious metal investing, but silver is quickly catching up in popularity. It provides a more affordable option to gold and has been on a solid upward trajectory in recent months as “safe-haven” assets become more important. Threats of rising inflation, conflict between North and South Korea, high unemployment, conflict in the Middle East, and many other worldwide factors are creating investor fear that is ultimately leading to safer investing.
The United States and European economies are not showing significant signs of financial relief. As Cleveland.com reported, “If the U.S. economic slowdown weren't enough to deal with, the Federal Reserve this week must consider a new threat: a resurgent European debt crisis that could imperil the global economy.” Decreased reliance on fiat money has become a mainstream priority among investors around the world.
Silver is also an industrial metal. Therefore, it makes a sound investment even in times of economic recovery. Since the “white metal” is supported by numerous geopolitical factors and is used in a myriad of industrial applications, it has a strong foundation that so many other investments do not currently have.
Many choose to buy silver bullion as a durable and reliable way to own a solid commodity that will retain its worth. These days, it is relatively simple to make a silver bullion purchase through a reputable precious metals dealer. Silver bars are easy to stack and store. For this purpose, investors may buy silver bullion in the 100-ounce size. For those searching for a heftier investment, 1,000-ounce silver bullion bars are available.
Toward the end of 2010, the average prediction for silver prices was $38.66 an ounce. With the current silver price already above $35 per ounce, it appears that bullish analysts made the more accurate forecasts. Jeffrey Rhodes of INTL Commodities in Dubai predicts that, by the end of 2011, the price of silver will top its 1980 high of $50 per ounce.