Just as gold has increased, silver prices have appreciated over the past four years as well. This is because silver embodies some of the same characteristics as gold. Both are precious metals that are considered safe havens during geopolitical uncertainty and weakness in the major economies. Additionally, there has been upward pressure of silver prices because of a supply shortage.

Increasing Silver Prices

For the past 20 years, the total demand for silver has exceeded the total production of silver. There is a similar trend occurring right now in the energy market. We're all aware of our insatiable appetite for gas guzzling cars and the lack of oil production to meet that demand. In the energy market, there's a cartel that manipulates the price of oil to keep it stable.

Since there's no silver cartel to regulate price movement, the silver market is free to run up. The gap between total silver demand and production has increasingly widened. The price of silver, therefore, should continue to rise. Any investing guru will tell you that when demand exceeds supply, buy! Warren Buffet, who is known for his unbelievable investment foresight, noticed the silver trend and bought 130 million ounces of silver in 1997.

At the Global Bullion Trading Group, we watch movements in the markets every day to keep our investors informed about industry changes. It's important to work with an expert before increasing in the precious metals market. The professionals of Global Bullion Trading Group are knowledgeable and experienced precious metal traders. We help guide our investors by providing exert advice and educational information about the gold and silver markets. Contact us at 1-800-479-7370 to enhance safety and increase portfolio returns with precious metal investments.