Silver Trading & Investments get lucrative on Higher Gold Prices:
With Gold Prices at much higher levels & out of reach of most of the small investors & them essentially being the largest in Numbers, Silver Investment provides the next most lucrative option after Gold. Also added the fact that Gold Prices have been on a rampage for the last 11 years & with Silver being mostly on the sidelines with a sole, though an exceptional rally last year to around $50, the time for a sustained Silver Price Rally may just have come. Gold Prices are at their highest levels in India due to the sharp weakening of the INR – Indian Rupee against the US Dollar. Gold trading participation, Investments & Jewelry buying has lowered considerably by a 56% drop in demand in the Indian Markets due to the historically high Gold Prices. Small Investors may in fact go to the extent of selling Gold to invest in larger quantities of Silver. Historically also, Silver follows a common path and responds similarly to its costlier cousin Gold. With higher Inflation expectations due to the dual factors of a severe drought in most countries & Economic stimulus efforts expected to be initiated anytime now on in the U.S. & Eurozone, Gold & Silver Trading or Investment is looked upon as a safe haven & is a natural hedge against Inflation. With lowered levels of risk appetite triggered due to recent meltdowns, traders may look towards Silver more than Gold as an option to hedge. Gold has declined only by a paltry 16% to the present $1620 level from its all time high if $1925 but on the other hand, Silver has slumped almost close to 50% to the present $27.50 levels from its high of $50 seen last year, providing a better opportunity of a faster upside recovery.
