The Biggest Reason the Price of Silver Will Keep Climbing in 2016

Sunday, March 13, 2016
By Paul Martin

by Diane Alter, Wall Street Examiner
The Daily Coin
March 13, 2016

The price of silver has climbed 12% in 2016, and we found one major reason why silver prices will continue to rise this year.

price of silverBut before we get to silver’s biggest upcoming catalyst, here’s what has pushed silver prices higher this year…

Worries about global economies, loss of confidence in central banks, and a slower pace of interest rate hikes from the U.S. Federal Reserve have all boosted silver prices in 2016.

Spot silver rose 0.2% to $15.63 an ounce Friday morning. That pushed 2016’s gains to more than 12% year to date. Silver prices hit their high for the year on March 7, when spot silver prices reached $15.66 an ounce.

Increasing concerns over a liquidity crunch in China, soft corporate earnings, and global woes have driven investors to safe-haven assets like silver. Silver is an actual store of value and it holds up better than riskier assets when markets are rocky.

Silver, like gold, is coveted as an insurance policy of sorts when markets fall. During the 2008 financial crisis, a time when investors were scrambling for safe havens, the silver price doubled.

The Silver Institute recently said it believes the silver price should “find solid ground this year” and that the silver deficit will accelerate. The deficit has been building for more than a year. In the first 11 months of 2015, U.S. silver mine production dropped by roughly 8%, according to data from the U.S. Geological Survey. Dwindling supply should continue to drive silver prices higher.

The Rest…HERE

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