Why Silver is a Steal Right Now

Why Silver is a Steal Right Now

Silver, which endured a steep 36 percent crash in prices in 2013 ended 2014 with another substantial fall in value. Yet, market experts and investment analysts have backed silver as a potentially good investment in 2015. It has been predicted that precious metal market which has been in a limbo over past two years will start predicted recovery in 2015 and would give long awaited relief to silver investors. Let’s take a look at market forces and factors that back silver as sound investment for 2015.

          1. Low price

Due to well documented in downturn of fortunes, the miracle metal is at the lower phase of price cycle that is steadily swinging upwards. Currently, with around 1.5 percent growth silver value per ounce is estimated to be $17-18. It is stated that even if we ignore other factors which point to increase in silver value, the potential investors should note the natural cycle of investments through which the assets are expected to be improve financially after a fall just for the sake of market’s health.

         2. Investment Demand

China and India, in their respective bids to expand their economies and to consolidate their position in World market have shown a great appetite for silver and gold. Even, when silver and gold were experiencing a fall in value, China was busy buying silver and gold at an astonishing rate. China has incorporated precious metals as key components in their aggressive economic policy with which they aim to establish themselves as a leading economic superpower in world market.

China’s neighbor India has also imported record amounts of silver at the end of last year. India led by new pro industrialist government is looking to revive their stagnant economy. According to market sources, the silver import in 2014 was expected to cross 5,000 tonnes mark.

It should also be noted that US mint experienced record demand silver demand in 2014. The physical demand for investment purposes is expected to be high in 2015.

 3. Higher Industrial Demand

Silver, which is known as miracle metal because of its many roles is widely used in industrial processes. The industry experts are predicting that there would be a significant increase in industrial demand for silver. The projected increase in demand for silver is expected to rise by 27 percent by 2018.

Silver is a key component of the photovoltaics. And, the increased awareness about clean solar energy has triggered demand for silver. China, Germany and Japan are expected to be leaders in clean energy production by 2018. The batteries, ethylene oxide, anti-bacterial and bearings are other applications which could boost silver demand as well.

   4. Uncertain Future Supplies

Most of the silver is mined in regions which are mired by geopolitical instability. The leading silver producers such as Peru, Bolivia and Mexico are constantly under the strain because of volatile political conditions, threats of labor strike and poor infrastructure. Any drop in supply could lead to improvement in value due to demand dynamics.