Why silver price is going up - supply, demand and global events
By now, the US mint has sold approximately 11,750,000 2011 1-ounce Silver Eagles. However, its production of Silver Eagles has dropped over the past several weeks and the Royal Canadian Mint is now about 4 weeks behind on its production of silver Maple Leafs. The demand for the Maple Leaf Dollar is still not as robust compare to that of American Eagle but it is picking up. Meanwhile on supply side of the equation, scrap silver pours into refineries from everywhere in astonishing amounts with everyone trying to make a quick profit. That scrap includes sterling flatware, jewelry, commemorative medal sets, obsolete coins and more exotic things such as silver putter heads, foreign tea sets, serving trays, silver hip flasks from the Prohibition era, candelabras, bola ties, old jewelry, African silver from colonial times and some rather unsightly silver junk - all sold for quite a bit of money because of silver value alone. Still not enough and sheer amount of scrap is causing delays in melting schedules.
The silver spot price is going higher and in every world paper currency. Among the the factors that are driving silver prices are,
- bad and hardly improving US economy
- horrible home sale numbers, high unemployment, falling dollar
- world wide high inflation which is going to get much worse
- global instability with looming wars in and around the Middle East
- European debt problems
- huge demand for silver in China and the US
- growing demand for silver in India
- high price of gold making silver more affordable and with much better return
There are two more factors. First, the realization that Japan recovery will require a lot of silver because Japanese high tech economy uses silver in so many ways. Second, growing fear of upcoming gold confiscation whereas silver is deemed to be immune from government overreaching, at least for now.
Thu Mar 24, 2011 12:03AM | Copyright: www.bad-credit-advisor.com | More in Gold Investing | Comments (0)
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