In recent years, the relationship of silver with geopolitical events has become increasingly noticeable. As with other precious metals, such as gold, this solid asset is greatly affected by the economic and political climate. While economic instability and political turmoil creates equally unstable currency-based assets and other investment vehicles, such as stocks, silver is often used as a hedge in order to offset further financial loss. Recent silver quotes at Monex reveal growing mistrust in fiat money and other assets.
Recent events in North Africa and ongoing strife in the Middle East have caused growing investor fear. You will also notice that announcements concerning the economy made by notable economic experts will cause precious metal price fluctuations. For instance, this past February, US Chairman of the Federal Reserve, Alan Greenspan, stated that he believed the global economy had some time before it would begin to recover. Before this statement, silver quotes were relatively stable. After his announcement, investors could observe significantly higher silver quotes at Monex. This was due to investors turning in their paper assets for more dependable silver assets.
These days, many investors are converting their assets to include 25 percent in precious metals. While financial advisers used to recommend 10-15 percent, many more are currently upping that number. A holding in silver or other precious metals has often helped investors secure at least a portion of their financial assets. During times of economic instability, many investors who focus on stocks suffer great financial loss. On the other hand, for those who have bought into silver at times when prices are low, significant economic instability often brings great profit. This is why it has become so important to keep a close eye on silver quotes at Monex over extended periods of time. Noticeable trends will begin to become readily apparent and, if lucky, can be used to secure future profit.
Many investors bought into gold several years ago as they predicted that economic and political problems would be ongoing and would greatly affect precious metal prices. For many, this choice has become increasingly profitable. Since silver and other precious metals are easier to invest in than ever, they have become staple investment tools around the globe. The multitude of investment options and ease of buying into these vehicles has made precious metal investing very appealing. With all of the news about dramatically rising silver prices, it has become increasingly difficult to find an investor who has not supplemented their financial portfolio with at least a small percentage of this precious metal.