This year has treated silver well as rising values showed a 25% increase that topped out at $17.90 on April 29th. This rise in value was unique only to silver as the other precious metals did not show increases similar to that rate. This trend has investors leaning on silver as a means for capital gains in 2016.
What is Driving Silver Values?
There are 3 major contributing factors that are driving silver values:
- Supply and Demand– High demand has silver values increasing. One sign of this is the sale of U.S. Silver Eagles. At the rate of sales now, the U.S. Mint will have a record year for silver eagles.
- Market Volatility– With the Federal Reserve rumoring interest rate increases, investors are turning away from stocks and turning to precious metals, further increasing silver’s demand.
- Gold-Silver Ratio– Usually, the Gold/Silver ratio sits near 50. But in the last few months the ratio has been closer to 75-80. Silver increases will drive the ratio back down to normal levels.
How Can You Invest in Silver?
If you’re convinced silver is a good opportunity for investment, you have several options. Investors often chose to buy silver bullion (coins) independently or create accounts to manage their precious metal investments. This includes opening an allocated bullion account or a silver IRA.