The first reason silver values have grown over 20% in one year has to do with the fact that silver is tied to gold. Specifically, the notion silver grows in value as investment trailing after the growth of gold increasing value.
The second reason that silver has grown in value has to do with the fact that is has grown in value. Because silver is gaining growth in investment price, that in and of itself is a self-reinforcing reason as to why the price of silver continues to grow. The fact that it grows in value causes old buyers and new buyers to talk about silver more and be interested in buying silver helping to increase demand for silver the medium and long term and decrease the quantity available to be sold in the short run.
One a side note, for self knowledge, silver itself tends to trade inversely to the dollar
That is to say that as the U.S. dollar falls in value other currencies rise in value in proportion to the dollar. This decrease in value of the U.S. dollar then enables buyers in foreign countries to enter the market and buy more silver than previously could because the currency of their national country has earned more buying power since the value of the United States Dollar fell.
The third reason the silver has grown in value has to do the Sign of the Times we live in today. COVID-19 is something that fills the news daily for a year and has caused the economy to take a back seat, if not in theoretical terms, most definitely in real terms as wealth has frighteningly decreased and flown many bank accounts. Then there are geo-politics to account for. There is also a second wave of resurging COVID-19 that threatens the economy and the value of the us dollar.
The literal truth, is time and data proves that more than three reasons for the price of silver to increase exist.
Russell Montiero
A fourth and more lesser known, yet still logical reason silver has increased in value has to do with the fact that the price of silver has been manipulated for years by investors, big banks, and economic industry to keep prices be cheap. In order that products might be cheaply manufactured.
Lastly, reason number five ass to why silver is growing in value. Silver is a finite resource. As it silver mines themselves do not if rarely exist. Silver is actually mostly recovered in the real world as a byproduct of mine of other resources and metals such as copper, aluminium, gold, or lead deposits. This means their is no gaurantee as to how much silver can actually be produced. This information put together with the fact that silver extracted out of the earth has declined year over year for at least the 4 years four years is a growing cause for concern.
As you can and have clearly learned from reading, there are most definitely more than 3 reasons why will silver can and will grow in value. All we have to do is, sit back, and wait for time to tell all.
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