|
The precious metal silver has always been popular in China since ancient times. Ornaments and other decorative items from silver have always been sought and treasured in Chinese households. However, the market is now turning towards the metal, not only as a decorative metal but also sees it as an investment opportunity. The market statistics indicates that the silver market is doing extremely well since its steady rise from the year 2010. The future trade contracts and the trading volume for silver have kept on expanding, promising a positive outlook for people investing in silver. The silver trading volume has increased by almost six times in this year as opposed to the year 2010. The Shanghai Gold Exchange (SGE) is the only exchange for trading the precious silver metal in China. This surprising turn towards silver can be the result of the current unpopularity with the stock and property markets. Stock and property markets have always been the hot spots among Chinese investors. However, the current bleak outlook, portrayed by the stock and property markets has forced the investors to look for other investment avenues. The investors have little choice for making investments, considering the whole picture. The silver metal seems at the top of the list after the stock and property markets are out of the picture. Analysts however argue that the investors are just betting on silver and have no real hope that the industrial demand of silver will rise. These silver investments are not made for providing a hedge against inflation as is the case in gold investments. Following the individual investors, commercial banks are also forging ahead in silver investments. In 2010, August, the Industrial and Commercial Bank of China Ltd (ICBC), came up with silver paper trading for single investors. This bank is one of the China’s biggest lenders. Silver prices always tend to be more volatile as compared to gold prices. The unpredictable silver price in 2010 cased some major setbacks for silver investors. This has however not deterred investors from staying away from investing in silver. In fact, some are of the view that the volatility of prices on silver leaves more space for speculation. This is turn can be used to gain good profits in future. Experts warn that this popularity of silver in the market has a short life. As soon as the stock and property markets rise, the investors will again turn to these more lucrative markets and start investing in silver. The freelancer is an experienced columnist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit silverprices.com for more details.
Related Articles -
silver price, silver prices, prices on silver,
| 
