Silver had another good day at the office as the G20 meeting between leading financial ministers failed to draw any satisfactory conclusions. The assembly did agree to increase the global economy by 2 per cent – around US$2 trillion – but they do not have a plan of action.
Traders meanwhile are hedging their investments with gold and silver purchases. Until the uncertainty of the global economy shows positive signs of strengthening, the market sentiment will stick with precious metals.
A brief history of silver prices
Having topped $49.50 in April 2011 following a gradual rise after the 2008 banking collapse, silver bottomed out in June 2013 at just $18.58. The pull-out was due to the US Federal Reserve announcing plans to taper its bond buying process in light of a strengthening economy.
Last summer hopes for the global economy were high and third quarter figures suggested we are heading in the right direction.
Since then, economic data in the US together with a slow-down of manufacturing in China has raised concerns about how quickly the global recovery actually is.
It’s slow – but it is not discomforting. Traders played safe in February and silver prices have balanced out around the US$22 point. Whilst traders remain unconvinced central banks are making the right calls, precious metals are not likely to begin their predicted decline just yet.
Silver prices expected to fall
Silver is a key component in industry and is proving to be a popular alternative to gold in India since the yellow metal carries high import rates which subsequently ups the cost. The white metal is also used to hedge against riskier investments and in a volatile market silver is considered a safe haven.
So, silver is performing better than expected at this stage, but once – or if – traders regain their faith in the progress of the global economy they will pull out of investing in silver bullion and bring the prices down even further.
Analysts have forecast silver prices to average between US$19 and US$20 this year meaning this is a great time for investors to add silver to their portfolios. History shows that silver has come within touching distance of US$50 an ounce, and if the debt ceiling crashes silver is likely to break an all-time high – which means the price of silver will more than double its 2014 prices!
One of the most popular types of silver bullion is the Silver Britannia coin which is struck in the Royal Mint in Llantrisant in Wales. Steeped in history, the coin features the Roman Goddess, Britannia who is often depicted standing with a shield and trident.
The 2014 silver Britannia marks 100 years since the outbreak of “The Great War” and again features the windswept heroine of Britannia. The coins are made with a .9999 fineness and are free from capital gains tax when the time comes to sell.
For the latest deals on silver Britannia coins, visit coininvest.com and protect your financial future today.