Everyone knows that the price of gold has skyrocketed over the past few years. But did you know that the price of silver has also risen dramatically in the past five years? Silver is considered a precious metal just like gold and platinum. For years the price of silver was very stable at about $5/oz. In the last five years the price of silver has escalated, and as of today silver is priced at more than $29/oz (March 18, 2013).
Why is the price of silver rising so much? Silver is traded as a commodity in the market, and many investors are using precious metals like gold and silver to hedge against inflation. Inflation happens when a government’s money becomes worth less and less. As these investors seek out more precious metals as a safety net against inflation, the price of the metals goes up.
Precious metals also have an intrinsic value. Silver, even more so than gold, can be used as an industrial material for products like electronics and computers. As the world’s economies grow, like China and India, the demand for industrial materials will continue growing along with their manufacturing capabilities.
Another consideration is that the supply of the Earth’s silver is becoming limited. Less and less silver is able to be mined, and some countries, like China, are reserving a larger portion of what they mine for their own industrial uses.
So, continue to treasure your Barse sterling jewelry, but now know that it is even more valuable monetarily!
