Silver is one of the precious metals which are commonly used in producing coins. Silver coins have been in use even during the Greek civilization up to the present. However silver coins begin to evolve through the passage of time if the olden times used pure silver to make coins, modern silver coins these days are already mixed with special types of alloy. As a result original silver coin prices inevitably increase and will keep on increasing through the coming years because of its rarity and scarcity.
Recently some analysts envisage a rapid and inevitable increase in silver coin prices due to the fact that the vast supply of silver is already declining. Struggling world economy, a major industrial demand, a continuous growth of silver coin investment demand and most of all the significant role of silver as a valuable asset are also among the reasons for the drastic increase of silver coin prices.
In the advent of a floundering global economy investors purchase gold and silver coins and bullions as a safe haven for their investments. However the role of silver could not just be considered as a safe haven since it has magnificent uses such as monetary currency which could not be devalued unlike the paper monetary currency. As a result mass production of silver coins is made yet it is still limited due to the fact that sources of silver are already depleted. Consequently Silver coin prices never cease to increase it keeps on surging up in view of the fact that silver coins are widely used in many places more than gold coins are. Thus Nobel Laureate Milton Friedman once said, “The major monetary metal in history is silver, not gold.”
In the light of an increasing demand of technology, the industrial demand for silver is also surging up thus eventually depleting its vast supply. Aside from modern technology, silver is also used in the production of jewelry as well as silverwares and table settings. Due to this incessant escalating demand of silver and the exhaustion of its natural resources the value of silver increased as a result, production of silver coins decreased for this reason silver coins are becoming rare and scarce reason enough for the increase of silver coin prices.
Silver coin prices are thought to be bloating up due to constant economic inflation all over the world. With the daily oil price hike, dollar value of every consumer stays flat and most of all lack of job security; some people are urged to invest on substantial assets such as gold and silver coins so that they have something to bounce back during the lean season.
Upon knowing the potentials of gold and silver coins, more and more investors scurry to get hold of these gold and silver coins. With the rise of gold and silver bullion investment demands silver coin prices are greatly affected.
Investment demand has begun to impact the price of silver, with the iShares Silver ETF being largely responsible. This ETF represents over one-third of the global market for silver and increasing investments in it will likely drive silver prices higher. In addition, the short position in silver futures has grown so large that it must be resolved and this will lead to skyrocketing silver prices.