My friend, Paul, just returned from a business trip in Europe and he told me that he was surprised to see that silver is becoming quite popular among fashion enthusiasts. Doing some research, he said that silver is now the metal to watch among European investors. Silver has long been popular in Asia where it is known as a cheaper alternative to white gold and platinum. However, at the rate that price of silver increased in 2009, it is not that cheap anymore!
From an investor point of view, this is certainly awesome news, even though the increase has not been as sharp as it was a year ago. This year, the price of silver may see some correction, but if an investor is in the commodity market for a long time, he should know that this is expected after the phenomenal increase last year. It wasn't just silver or gold that benefited from investor activity last year but almost all metals and minerals.
Paul has been wondering if he should expand his metal portfolio to include silver. He has only been investing in gold so far, which is almost like a sure bet. Frankly, I am not able to let him have a definite answer to invest or not. I always believe that an investor should do his own research, read up on what the experts have to say, check the price trend, etc. and as if this homework is still not enough, luck plays a role in any investment too.
Fortunately, with access to the world wide web, doing research prior to committing to an investment is a lot easier now compared to ten years ago. I remember my father would dig up old business papers to check for prices and trends. We don’t have to do that now.
Anyway, according to a commentary on the recent World Silver Survey, many gold investors who are finding it difficult to keep up with the increase of gold price, are switching their focus to silver. This will be a factor in driving the price of silver and helping to sustain it in addition to the increase in silver holdings by the Exchange Traded Funds.
From an investor point of view, this is certainly awesome news, even though the increase has not been as sharp as it was a year ago. This year, the price of silver may see some correction, but if an investor is in the commodity market for a long time, he should know that this is expected after the phenomenal increase last year. It wasn't just silver or gold that benefited from investor activity last year but almost all metals and minerals.
Paul has been wondering if he should expand his metal portfolio to include silver. He has only been investing in gold so far, which is almost like a sure bet. Frankly, I am not able to let him have a definite answer to invest or not. I always believe that an investor should do his own research, read up on what the experts have to say, check the price trend, etc. and as if this homework is still not enough, luck plays a role in any investment too.
Fortunately, with access to the world wide web, doing research prior to committing to an investment is a lot easier now compared to ten years ago. I remember my father would dig up old business papers to check for prices and trends. We don’t have to do that now.
Anyway, according to a commentary on the recent World Silver Survey, many gold investors who are finding it difficult to keep up with the increase of gold price, are switching their focus to silver. This will be a factor in driving the price of silver and helping to sustain it in addition to the increase in silver holdings by the Exchange Traded Funds.
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