Many analysts believe that this is the right time to buy silver as this precious metal is grossly undervalued. Experts concur on the opinion that the prices of precious metals such as silver and gold are going to shoot up.
There are some economic indicators which will help you decide whether you want to buy silver or not. One of the factors which are likely to inflate the price of silver is the Quantitative Easing program by the US Government. Under this program a large amount of money has been printed, which has resulted in inflation and has also driven investors to safe havens of investing such as silver and gold.
Another reason why investors should buy silver now is that the Euro is taking with a beating with the huge bailouts given to Greece, Portugal, and Ireland to stop them from defaulting on their obligations. This would also increase the price of silver.
Silver is in demand for industrial use. Of late, it is also being used by the electronics sector. In most cases, it is not economical to salvage this silver. Since only a small quantity of silver is made into bullion; when people start to buy silver, the prices are likely to shoot up. There are a lot of Chinese investments coming into silver; analysts say that this strategy has the support of the Chinese government.
Another theory says that the silver price has been artificially depressed to prop up the US dollar. But this practice is not likely to continue as the resources are depleting. The public are also likely to call for an end to major banks selling short.
The price of silver has not increased along with inflation. If it had, the silver prices would have been higher. However, all economic indicators point towards the price of silver going up. So it’s the best time for you to buy silver.