Silver Buying Gets Impetus Thanks to Affordability Factor

The opinion in the marketplace about the fate of silver in the coming months seems to be divided, with some experts predicting a $100 pricing while others hold out dismal expectations. Whatever the future may bring, the investing public seems to be happy to buy silver today, much more so than ever before. It appears that there is an increase in the interest shown by the market in this metal and many analysts believe that this is because of silver’s affordable price tag.

How Much Price is Too Much?

It appears that investors are asking themselves this question because a dip in prices of the metal seems to be prompting a buying silver spree instantly. Although the price of silver coins or other silver products has increased significantly over the past decade, the metal continues to be an affordable option especially when compared with other similar assets. Perhaps it is the zoom in price of other good stores of value that have underlined the increased demand for silver coins, bars and other physical silver products. No matter what the reason behind the movement, investing in silver is certainly bound to pay rich dividends in the future considering that the metal has grown steadily in value over the past five years.

Since even a small investor can add a reasonable amount of physical silver to his portfolio, investing in silver may be a smart move for many, especially if they have an equity rich portfolio. Buying silver will add stability to the portfolio and insulate it from the impact of inflationary trends.

Expectation of Increasing Demand

A significant share of the demand for silver arises from industries and this demand is not likely to wane anytime soon. However, this year, in a surprising turn of events, it was noticed that demand for this metal from India was also quite high. This Asian economy is usually a market leader when it comes to demand for gold bullion and this increased silver demand is somewhat unexpected. What it could mean is that more investors are now understanding that investing in silver may be just as savvy an investment move as buying into the yellow metal.

If this is indeed the market sentiment behind this shift to the affordable metal then investors should buy in quickly. It is a well known fact that silver reserves are highly limited. This restricted supply will soon ensure that the only remaining silver in the market is that in the hands of investors themselves.