Sunday, 7 November 2010

Silver Prices, or The Artisan Gambler

My supply of silver wire is dwindling. I probably have enough to last me until spring of 2011, especially at my production rate, but therefore lies my conundrum. What will the price of silver be in 2011? Has anybody else googled forecasts? The price right now is higher than it has been all year. Will it drop again or will it continue climbing?
The best (meaning forecasts for dummies) forecast I've read so far was Scotiabanks. They laid it out in very understandable terms and this is what I took from it:
Silver is a precious metal, albeit a cheap precious metal, and is used as a good investment in tough economic times or as a hedge for inflation. Therefore, it will be high at the moment, until the economy has a sustained recovery.
Silver is used for many new electronic applications. Because of the economic downturn, demand for these electronics is lower than usual, but as the economy recovers, so will the demand for these new electronics.
The production of silver has been lower than the demand since 2008. Because of the recession, this has not been a supply/demand thing causing higher prices, but as demand increases, it will.
My conclusion: I'm going to buy as much silver now as I can afford. The last time I faced this dilemma, silver was $17 and change. It rose steadily, dropped drastically for a short time and jumped right back even higher than before. I had bought it at the $17 price, which didn't make me as smart as anyone who waited for the sudden drop, but they are better gamblers than me.
Let's check back in a year to see if I made the right decision!


  1. silver will soar!

  2. Unfortunately, I think you're right. Silver clay prices will increase, too.