Throughout history, silver bullion has remained quite steady and consistent, however beginning around the 19th century, it started to see many more fluctuations in price. Why is this, and why does the price of silver seem to still remain so much lower than that of all the other precious metals? Though there is no one definitive answer, many experts agree that there are plenty of factors at play in determining this trend.
Some people were under the impression that market manipulation and the artificial repression of silver within the past few decades had to do with the change. Other sources claim that alternate vehicles of investment in the same sector (i.e. gold, palladium and platinum) also performed poorly as well. Gold and platinum, for instance, both trade for around $1600/troy oz on average, palladium rings in at approximately $800 currently, and by comparison, silver averages out to only about $30 for the exact same amount in weight per ore. Beyond silver, the next most affordable option is around 25 times more expensive, and the two that stand as the MOST expensive are about 50 times the cost of silver is.
Understanding why this trend continues is not easy to figure out. Some point out that this mineral is found in far greater quantities and in many more regions than the other three vehicle available in this category. It is not considered as rare even though the demand for it is just as high as it is with the other 3 options. Others suspect large organizations or even governments of buying and selling in order to keep the market value low.
Though it may prove impossible to find a truly specific or one right answer about what this precious metal costs and how that concerns its affordability and thus makes it a good pick for many investors, that remains the case. Many people who experience concern over currency devaluation, economic collapse, hyperinflation or otherwise choose the silver bullion in order to gain protection from those sorts of events. Since the buying threshold is so low, it is accessible even if your capital is not much to begin with.
This precious metal is not always the right choice, but it can be a good pick in many cases because it is so flexible and it works well with many different strategies and tools. It can be an all purpose choice which can increase your diversification and help you hedge against the future. It usually retains value and can help you maintain worth over time. That makes it a great tool in many situations and circumstances.
Some people were under the impression that market manipulation and the artificial repression of silver within the past few decades had to do with the change. Other sources claim that alternate vehicles of investment in the same sector (i.e. gold, palladium and platinum) also performed poorly as well. Gold and platinum, for instance, both trade for around $1600/troy oz on average, palladium rings in at approximately $800 currently, and by comparison, silver averages out to only about $30 for the exact same amount in weight per ore. Beyond silver, the next most affordable option is around 25 times more expensive, and the two that stand as the MOST expensive are about 50 times the cost of silver is.
Understanding why this trend continues is not easy to figure out. Some point out that this mineral is found in far greater quantities and in many more regions than the other three vehicle available in this category. It is not considered as rare even though the demand for it is just as high as it is with the other 3 options. Others suspect large organizations or even governments of buying and selling in order to keep the market value low.
Though it may prove impossible to find a truly specific or one right answer about what this precious metal costs and how that concerns its affordability and thus makes it a good pick for many investors, that remains the case. Many people who experience concern over currency devaluation, economic collapse, hyperinflation or otherwise choose the silver bullion in order to gain protection from those sorts of events. Since the buying threshold is so low, it is accessible even if your capital is not much to begin with.
This precious metal is not always the right choice, but it can be a good pick in many cases because it is so flexible and it works well with many different strategies and tools. It can be an all purpose choice which can increase your diversification and help you hedge against the future. It usually retains value and can help you maintain worth over time. That makes it a great tool in many situations and circumstances.
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