Like many other precious metals, there is a huge demand for silver, and not a whole lot of supply. The stockpile of silver that was built in the 1950s is nearly gone, forcing miners to search longer and harder for new places to find it. This, of course, is one factor driving the price up. It has been estimated that silver could be hitting $20 per ounce soon if trends continue.
With the US economy spiraling and the dollar weakening, investors watch precious metals with a keen eye. The price of silver, like gold, goes up when the dollar declines.
Gasoline and grocery prices are forcing US consumers to spend less money on products that aren’t absolutely necessary. However, the growing economies of China and India are taking over where the US is lacking in the precious metals market.
The Federal Reserve is lowering interest rates to combat the problems the real estate market is having. While this is helping homeowners, it makes investing in US markets less appealing to foreign investors.
Some analysts believe the current decline in the price of silver is the lowest it will go. While the recent shortage is making some investors nervous, it is though that most likely silver prices will jump back up, and fairly soon.