Silver In Inflationary Times

Silver is the ultimate inflation protector. Investors don’t have that many options looking to protect their wealth and profit from a central bank created fuelled inflationary environment. Silver tends to be a little bit more volatile during these times. Currently, two important factors are at play right now.

The first thing to consider in the short term is the global economic crisis and the rising inflation in major countries. The second has to do with the demand from the manufacturing industry. Many silver buyers may recall how silver performed after the Great 2008 Global Financial crisis. The performance was mainly due to the measures taken to ease the recession than the actual recession itself. We are talking about the quantitative easing that took place in 2009.

Are were headed the same way we did in 2009 -2011?

In 2008 an ounce of silver was priced at $8 and then Lehman Brothers fell and catapulted the price of silver to $48 an ounce. The highest point that silver got to was in 2011 and since then, it never went down to that $8 an ounce.

Right now we are seeing governments pumping a lot of money into the economy and central banks flooding the world with ‘new’ money. There have been expectations that the price of precious metals would skyrocket, it hasn’t really reached the levels everyone has been talking about. For instance, Gold was expected to go way above $2,000 an ounce whilst silver has been expected to break through the $30 mark. It came close and even got pushed up by the actions of some brazen Redditt subs but then it swung back low. If you are looking to buy silver bullion Brisbane or anywhere else you should know that the market trading range. For now, it seems to be stuck between $22 and $28.

How are things different now?

Many silver investors are expecting inflation to go haywire. Governments across the globe have been pumping trillions of dollars into their country’s economy. Many analysts have kept a razor-sharp focus on inflation figures. This is not just happening in one country but across the globe.

A lot of people who buy silver bullion Brisbane might be scratching their heads wondering why precious metals aren’t running up. Why there are so many disparities. The dynamics affecting silver might have changed whilst other precious metals like gold struggle. This time there is something significantly different. There is a rise in the demand for industrial metals and silver happens to be one of the most popular industrial metals out there. This means that silver is starting to look like the best protection against inflation.

Silver is set to benefit from both inflation and the rising demand for silver. At the moment it would seem that the manufacturing industry is in much bigger need of silver. Silver has always been a good choice for investment. It holds its value relatively well in tough economic times. This time the prices aren’t just being spurred on by the economy going up down but by the actual consumption of silver now and the projected future. Every day, the prospect of silver reaching $30 looks more real than it has ever been.