Investing In Silver Bullion Right In The Nick Of Time

Silver market news today is that the flight-to-safety trade is back on, as evidenced by silver bullion recent price moves. Silver prices went up roughly 5% last week, which helped the precious metal log a 21.3% gain for August, and nearly 30% over the last nine weeks. Silver prices have rebounded about 28% since the lows of late June, and are currently trading at around $23 an ounce. This move means that silver broke out above its 50-day moving average. Barclays’ technical analysts pointed out that the week before last was silver’s best week since 2011 with a gain of 14.3%. 

This put the precious metal at a level of $ 25 per ounce for the first time since May.

How right timing is essential when buying silver bullion

Technical analysis set aside, there are serious reasons for this move up in silver prices and, according to experts, these same reasons will give more double-digit weekly gains in 2013, and will carry silver prices to $40 an ounce by 2014.

Market officials focus on the strong physical demand for silver, which can be seen in the bullion coin market. The latest numbers from the U.S. Mint show that there were 31 million ounces of silver coins sold so far this year, while in 2012, there were 33.7 million ounces of silver coins sold all year. Other mints around the world are showing a similar pattern. The Royal Canadian Mint said that people seemed to be buying the coins on every dip in precious metals prices. Chris Carkner, managing director of sales for bullion, refinery and exchange-traded products at the Royal Canadian Mint, told Kitco “Year-to-date, after the second quarter, we’ve had record volume for silver Maple Leafs, the greatest we’ve had in the over 25 years that we’ve produced them.”

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North American investors aren’t alone in their attraction for physical silver. Silver imports into India in the second quarter of 2013 surged an astonishing 259% to 857 metric tons, which put into perspective is the equivalent of roughly a third of the world’s monthly production of silver. The month of July alone saw imports of 275 metric tons, the second-highest monthly import number in the past five years. It appears as though Indian citizens are simply substituting silver for gold until their government ends its war on the yellow metal. Silver purchases are also a good way for investors in India to feel protected long-term against a plunging currency

One rapidly growing source of silver demand is in photovoltaic solar panels. Since 2000, silver consumption from this sector has risen by 50% annually. In 2002 silver usage for solar panels stood at one million ounces, but grew to 60 million ounces by 2011. It is projected that demand from Japan and China alone will soak up nearly 11% of the world mine supply.

The global trend toward buying physical silver continues, and timing is always crucial. For that, you need companies like that have the experience and expertise to guide you safely through your silver bullion investment venture.