Silver's Future

There is no way to say what the future of silver is going to be but one thing that is for sure is that it does look very promising. Perhaps one of the main reasons silver has not taken off yet is due to the fact that there have not been a lot of people interested in investing in silver. Gold on the other hand is something that a lot more people have taken interest in and silver is also getting its fair share of attention now.

One of the most important points that have brought silver into people’s interest has been due to the fact that the SEC has approved a silver Exchange Traded Fund. This means that all types of investors and people that are interested in the silver market have the opportunity to participate in it. However, there are many people that are not aware of how to go about buying silver and once they have bought it, another concern is where to put it. There are some viable solutions to this concern though.

While it is true that there is no real way of knowing whether an investment will go up to a certain price, silver has demonstrated its ability to grow quickly recently. The best thing investors can do though is to manage their decisions with logic.

The Federal Reserve makes public weekly and monthly information on two money supply measures M1 and M2. The money supply data, which the Federal Reserve supplies, can be read in newspapers and they are accessible on the Internet as well. The Federal Reserve publishes measures of large time deposits on a quarterly basis in the Flow of Funds Accounts statistical release. The money supply measures are a sign of the diverse degrees of liquidity—or spendability that diverse forms of money have. The most narrow measure, M1, is limited to the most liquid types of money and it consists of money that the public has such as travelers checks, demand deposits, and other deposits alongside which checks can be written. The Federal Reserve allows people to determine the theoretical price of gold for any period as well.

One thing that is always mentioned is how in 1980 gold ascended to eight hundred dollars per ounce for example if you were to look at the currency component in 1980 that was 105.144 billions dollars and divide it by 262 million ounces you would be able to see that the dollar price of gold was of $400.00. However, there was a time in which gold was sold for two times that amount at the beginning of 1980.

If you were to calculate how this aspect would be now in our current date the results can be quite impressive. According to the M1 supply from the year 2000 it was said to have been of 523.078 billion. In essence this would mean that it would be of around $2000 per ounce. Whether or not gold is going to reach this price, no one really knows but if you look at the current year now gold would actually be higher than it was in the year 2000 and there are those that have even suggested it would be of three thousand to five thousand dollars per ounce of gold.