If you follow precious metals, then you likely have some idea of just how significant the returns for early investors have been in recent years. Few could have predicted what would happen to these metals after the US and global economic crises, but those with a solid understanding of the history of these metals were certainly quick to react and start buying while prices were still low. Today, precious metals are trading at record highs and many believe that the silver price is poised for a massive increase that will bring it to a new baseline that is closer to the price of gold than the current price.
In a world where investments are anything but predictable, how can so many believe that such a major increase is not only possible, but probable? Well, the answer is somewhat complex. For starters, silver has a long history of value and wealth protection that makes it highly sought after by investors. With many believing that even if the dollar regains value when all is said and done that precious metals will still be common in most portfolios, it is easy to see that demand for silver is expected to remain steady.
But what really spurs the belief that the silver price is poised for exponential growth is the diminishing supply of the metal in the face of ever increasing demand. Unlike most metals, silver is very highly used in industry, and more than this, it is consumed. Only a few percent of the world’s silver supply remains, and with so much being destroyed every day, the increase in demand means that an increase in value is a necessity. Over time, silver is going to become exceptionally rare, making it require a very high premium in order to purchase bullion.
The bottom line is that silver is an excellent investment with great return potential and great wealth protection. These are two things that every investor needs to look for, and the latter has become even more important after the losses that most took during the peak of the economic crisis. We all want to make better and smarter investments, and precious metals are proving to be the way to go. If you are looking for the best way to protect your portfolio against whatever the economy may bring, the potential for a massive increase in the silver price is certainly something that you should not overlook.