Is the current surge in silver price sustainable?
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By Jeremy Holcombe Contributing writer for Goldco Direct and End the Lie [caption id="attachment_39491" align="alignleft" width="300" caption="24 hour spot silver price covering February 27 and 28 (Image credit: Kitco)"] [/caption]Silver has been on fire for the first couple of months in 2012. The white metal has actually been the very best performing precious metal commodity since the start of the year. Currently, silver has gained more than 25 percent since the close of 2011. However, even with the amazing performance put on by silver in the opening months of 2012, the big question on the tips of every investor’s tongue is: will silver be able to sustain this type of performance for the rest of the year? This is a huge question, and answers may vary drastically depending on whom you speak with. Since I am the writer of this article, I am going to tell you what I believe silver will do for the rest of 2012. Silver has several things going for it, things that it will always have going for it that will help sustain the price to some degree. Perhaps the biggest pro that silver has on its side at any given point is the fact that the white metal is very heavily used within industries around the world. It is also used heavily within the healthcare field and thus is constantly in demand. From a supply and demand viewpoint, the demand just continues to grow. The fact that silver is being used faster than mining companies are able to mine it right now is actually a good thing. While something needs to be figured out in terms of solving this problem (there is an almost unlimited silver supply, mining companies just have to figure out how to get to it and how to mine it faster), the fact of the matter is that demand is so high for industrial use, that the metal will always have some value. Let us not forget the fact that silver is used in a great deal of jewelry, fine cutlery and tableware, and other luxury items. Now, add onto that fact that silver coins and silver bars are still very collectible and highly sought after for investment purposes and you have a nice mixture of opportunity for the white metal. Sure, silver had its ups and downs last year. It rose higher than it ever had in price before dropping for the last few months of 2011. However, many have speculated (myself included) that silver will make it to the $50 per ounce price range sometime this year, or at the very least get close to it. I think the overall outlook for silver is still excellent. It is used by so many industries that it will always have value even if the luxury items and collectibles fall out of demand. I believe that right now is a great time to get invested in some silver bars or silver coins if you’d like to get in on silver before the price goes even higher. At the very least you will be putting your money into something physical that will protect it. The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct . Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.