We talk a lot about gold here at Manhattan Gold & Silver, and sometimes it can seem like silver is a bit unappreciated. But that idea is far from true.
The silver market is an interesting animal. Did you know that silver is potentially more valuable than gold? That’s because the industrial applications that use silver destroy the metal in the process. The demand outstrips the amount of new product mined; the difference is made up by remelting scrap metal.
The result is a price that may go in several different directions at any given time. Sometimes it seems to move relative to gold prices, but other times, it seems to be moving without any apparent connection to the precious yellow metal. Silver is its own best friend. And this year, it could be a friend to you.
At the start of 2005, the price was just under $6.50. Now, five years later, it has more than tripled, which put it in shooting distance of $30.00 per ounce with many market-watchers expecting it will hit that benchmark and continue upward in 2011.
So the coming year could see silver prices soar higher than ever before, according to some. But that’s not likely in either literal or figurative terms. Silver previously peaked in 1980 when the price hit $49.45 per ounce. But adjust for inflation and the price would have to vault to $250 per ounce to break new territory.
We will continue to watch the market and post about news as it arises. When you’re ready to bring your silver and other precious metals in for recycling, we’re here to help.