Why Silver Is Headed Up And How To Take Advantage Of The Trends

silver slump swells

Silver is one of my favorite commodities to follow, and for good reason. Silver is one of the unique commodities in the sense that it is not just a commodity that’s used by the public, it’s a safe haven investment. After an in depth analysis into the precious metal, I’m ready to dump my life’s savings in it because I believe that recent gains are just the beginning of the growth we’re likely to see. Today, we’ll talk about the factors that cause movement in the value of silver, what we’re seeing with regard to these factors at the moment, what we can expect to see from the price of silver moving forward, and how binary options traders can take advantage of the trends.

What Factors Cause Movement In The Value Of Silver

As with any other commodity, silver is largely at the mercy of supply and demand. When supply is high and demand is low, the value of the commodity declines. Adversely, when supply is low and demand is high, the value of the commodity climbs. It’s also important to keep the safe haven qualities of silver in mind. As a safe haven, silver is one of the assets that investors flock to when market activity is poor. So, when we see declines in the market, we can expect to see increases in demand for silver, and therefore an increase in price.

Why I Believe That Silver Is Likely To Climb

As mentioned above, there are two primary factors that cause movement in the price of silver. They are supply and demand. Here’s what we’re seeing with regard to the supply of and demand for the precious metal…

Supply – While supplies of silver seem to be remaining steady at the moment, this isn’t likely to last long. Over the past few years, the values of precious metals have been falling in a big way. As a result, mines for metals like zinc and lead are slowly closing. So, what does this have to do with silver, you ask… Well, silver is primarily a bi-product found in zinc and lead mines. As these mines shut down, supplies of the precious metal will start to sink, leading to an increase in price.

Demand – It’s also important to look at demand, and in the case of silver, demand is climbing in a big way. In fact, the US mint reported that in the first day of offering silver bullion coins this year, it sold about half of the amount of silver that it sold in the entire month of January last year. That’s a massive spike in demand. This spike in demand is likely to continue in a big way. Above, I mentioned that silver is a safe haven investment. This is a very important fact to consider, especially with the market moving the way it is. The reality is that the global market is performing poorly and investors are starting to look for ways to keep their money safe. This is also leading to increased demand for silver.