Silver bullion prices continue to fall, but it is only a matter of time before the white metal makes a remarkable recovery. Inside traders have divided opinions on when silver will enter another bull-run, but one thing they can all agree on is that silver prices will rampage through the market again.
The cause of silvers declines hinges on several factors, but most influentially on the strengthening of global markets which has encouraged traders to invest in equity markets rather than precious metals.
However, the current pullback gives savvy investors plenty of time to build their investment portfolio whilst silver prices are low. And the indicators suggest investors will need to rely on precious metals as a security measure against an impending economic crisis.
The liberal printing of electronic money by central banks will inevitably lead to gross inflation which could prompt a policy induced recession. If that does happen investors will look for protection from precious metals and silver prices will rocket.
High demand for silver
Furthermore, the demand for physical silver is on the rise. Sanctions passed on gold imports by the authorities in India bumped up the prices of gold which prompted consumers to turn their attentions to silver as an alternative.
The white metal is also an essential commodity in the electronics industry as it is used as a semi-conductor in numerous devices including mobile phones and tablets. As technology plays a vital role in modern society, the demand for silver will become fierce and drive prices up.
Eventually demand will blow the roof of silver prices as the requirement for industrial purposes outweighs the amount that is currently being mined. Due to the fall in prices many mines have pulled back on silver production.
Not only is silver scarce right now, but resources will run dry in around 20 year´s time. Therefore buying silver now with a view to long-term investment will return some serious profits.
The manner in which the banking system is designed is to keep the world in perpetual debt. The debt rate in the US increases by $10m a minute. Piling debt at this rate is not sustainable and eventually the ceiling will collapse.
Analysts are predicting the next economic meltdown will be even more devastating than the 2008 banking crisis caused by the housing collapse of 2007. It stands to reason that lending borrower´s money they cannot afford to pay back will eventually cripple the economy.
In the UK for example, the government introduced the Funding for Lending scheme to encourage banks to start lending and fuel the economy. The scheme makes way for low interest repayments for four years after which time repayments will go up.
During this time we will also have seen a rise in inflation and subsequently the standard of living, but it is unlikely that salaries will rise at the same rate. Therefore, when interest rates go up borrowers will struggle to make repayments and fall into debt.
Investing in silver will help you steer through the next recession and avoid the dark clouds of debt. Take a look at silver prices from coinivestdirect.com and start saving for your financial future today.