Silver has gained quite a lot of traction in recent times, as people begin to see it as a sound precious metal for investment purposes. It’s ever-increasing demand and relatively affordable price tag have rightfully led to it being known as poor man’s gold. When stacked against gold, silver is out performing its counterpart exponentially.

Potential silver investors are always told about the volatility of silver, but are seldom briefed on what exactly drives its fluctuating prices. The recent surge in silver prices, for example, can be credited to several factors.

Industrial Demand

A large portion of the total demand for silver comes from large industries. Whether it’s in the production of the latest smartphones or in batteries, which are used by nearly every single appliance, the industry’s demand for silver never subsides. This, in turn, has led to a surge in silver pricing to match market demand.

Gold Demand

The gold and silver ratio theory hypothesizes that the fluctuation of silver is directly correlated with gold, but with a much higher risk factor.

Historical pattern analysis shows that gold has experienced an exponential rise in value, and silver was quick to follow. However, when gold prices fell, silver prices would be hit with an even larger deduction.

Although daunting,  silver’s worth, much like gold’s, will soar during any period of economic instability. The best time to invest in silver would be during a recession, and the best time to sell off your silver investments would be during an economic boom.

Investment Demand

Initially, silver was seen as the ideal precious metal for a quick return rather than long-term storage. However, the growing demand in other domains has made it an attractive asset to investors everywhere.

The affordable rates have also made it a very accessible investment. You can buy twice as much silver at the same price you would take to buy a small amount of gold. Silver can be seen as a viable investment you can leave in your safe storage to grow and secure your financial future.

Where to Buy

If you want to tap into the world of silver investments, be sure to do so with us at Orion Metal Exchange. We help you invest in gold and silver and provide you with home storage and consultation. Contact us today to start preparing for a successful financial future!

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