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silver prices are expected to do well in spite of its decreased demand, due to its close proximity and similar characteristics to gold. So the time ahead for silver and gold investors seems promising. Kyles Humphrey is an experienced columnist in silver market, mining & stocks, who periodically writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit silverprices.com for more details.The current global scenario seems an eerie replay of the year 2008, when the world economy hit recession. The economic growth in the US and China has slowed down at a crawling pace. The sovereign debt in the Euro zone is not helping matters either. All in all this presents a bleak and grim picture for the world economy. Panic and fear has crept among global investors in the wake of a possibility of a yet another recession. The recent stock market indicated towards this build-up of panic among investors. However, the precious metals, silver and gold showed a steady high despite this escalating panic. Though both metals showed positive gains, gold outperformed silver by a considerable margin. The demand for silver has decreased a bit, as its use in the industrial sector has taken a hit. Prices for crude oil and base metals such as copper have also spiralled downwards. In such an economic background, investors are turning towards gold and silver as a more secure and viable option as a safe haven investment. Those who cannot afford gold are turning to silver as a more affordable option. The fiscal house in US is in a mess and the European Union is also trying to sort out its financial mess. This tottering financial mess has also showed its far reaching effects in the larger regions of Spain and Italy. The Central European Bank has tried to calm investor fears by stating that it would bear the burden of more EU debt via purchasing more bonds from Spanish and Italian governments. However, this measure by the European Central Bank seemed futile to calm the panic among investors. The role of US and the European Union to sort out their mess on their own is held in doubtful regard by investors. Companies are backing out of production in western countries as they are of the view that the governments of these countries seem incapable of handling the problems that lurk ahead, in regard to unemployment and a slow economy. The US is being criticised for its monumental expenses, out of proportion social welfare costs and a tendency to accumulate huge amounts of debt. If investor fears are realised and we find ourselves in recession, it will be a recession far grim and ugly than the one experienced in the year 2008. Such a volatile scenario has forced investors to turn towards the traditional investment options of gold and silver. silver prices are expected to do well in spite of its decreased demand, due to its close proximity and similar characteristics to gold. So the time ahead for silver and gold investors seems promising. Kyles Humphrey is an experienced columnist in silver market, mining & stocks, who periodically writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit silverprices.com for more details.
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