Will silver prices be boosted by Investments in China?
CommodityOnline.com
09 January 2012
Precious metals have seen a resurgence in recent years as investors search for ways to secure their wealth. Investments that are heavily reliant on the dollar are riskier than ever. Precious metals such as silver, on the other hand, provide hedges against economic uncertainty. For this reason, Silver has become a mainstream investment vehicle.
Countries such as China are purchasing silver in record quantities. China is encouraging its citizens to do the same in order to secure the country’s financial holdings and to become less reliant on weakening paper currencies. As a result, the price of silver is expected to continue its upward trend.
While silver has traditionally been overshadowed by gold, it does have the advantage of being an industrial metal as well as an investment metal. Stephen Leeb, chairman and chief investment officer of Leeb Capital Management, said, “There’s no industrial use for gold. It’s become ever-more recognized as a possible reserve currency. Silver does have industrial uses. It’s industrial vs. nonindustrial. They’re totally different classes. But silver overlaps. In a diagram, you would have silver in both sets: the industrial set as well as the monetary set.”
The Rest…HERE
