Although the cost of silver is not usually correlated with the stock market, prices of precious metals have historically risen as stock values plunged. If the stock market sees a correction, the price of silver could rise. Since gold has been used as money and as a sign of wealth for thousands of years, there is no reason to believe that its attractiveness will soon diminish. Also, keep in mind that precious metals, like any investment, carry risk of loss and are not a suitable investment for everyone.
Silver is, of course, the more exchangeable of the two precious metals, but it is often traded in conjunction with gold bars. I tend to make conservative forecasts, particularly compared to other experts in the precious metals space. Russia contributes significantly to the global supply of precious metals by approximately 2.6 per cent of the global supply of silver, 15.1 per cent of platinum, 9.2 per cent of gold and a staggering 45.6 per cent of the world supply of palladium. As a result, this demand increases the prices of precious metals and helps investors hedge against inflation and the devaluation of the dollar.
The Gold Alliance's view is that precious metals should be considered a long-term investment and that, although you can sell your precious metals at any time, you should be prepared and willing to keep purchased precious metals for several years before selling them. Therefore, with the challenges facing Americans today, it should come as no surprise that demand for silver increases, and many financial experts think that the price of the precious metal is increasingly likely to rise and reach an all-time high. This is called the gold/silver ratio, which is constantly being watched by experienced precious metals investors and traders to see where the pendulum will move next. In recent years, the Federal Reserve has reduced rates to zero, a move that positively affected the prices of both metals.
Comparing the current price of silver with its modern price history is the first step in analyzing the possible evolution of the prices of the popular precious metal. It has also stated that silver production has declined in recent years, which means that, contrary to popular belief, metal is actually a rare product.