Demand for Silver Is Up In China

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According to a Bloomberg report silver demand will rise by as much as 10 percent in 2013. Silver has jumped 6 to 8 percent in China so far this year, and next year looks even more promising. About 33 percent of the silver in China is for coins and jewelry, with the rest consumed by industry. Investors in China have been buying up silver because their economy has slowed, and they are seeking the relative safety of silver.

Many Chinese investors prefer hard assets over paper investments and since gold is currently trading so high many have invested in silver instead. As a result, many Chinese investors have taken to hoarding the precious metal. Silver jewelry is big business in China, and sales have spiked over 19 percent from a year ago. This increased silver demand in China will certainly help keep the silver spot high. You can check the Monex silver prices chart and track your silver investments on a daily basis.

Another emerging market, India typically prefers gold over silver.  However, due to the high spot price of gold, silver has increasingly become the precious metal of choice. Online.wsj.com says that there is still room for silver to spike in price before 2012 ends. Spot silver in New York has increased by 27 percent between June 2012 and November 2012. If gold is out of your reach because of the high price, silver is doing very well, and this performance may only be the beginning. In addition, currency weakness in India should help keep silver on its upward trend.

In the United States concern over the fiscal cliff negations between the President and congress and the continued debasing of the dollar by the Federal Reserve has helped push silver up in price. It is also expected the Euro Zone’s troubles will continue through 2013. The Euro has gotten stronger, but the weaker dollar is welcomed by gold and silver investors. According to resourceinvestor.com investors should stay on top of the market, because while predictions are rosy for gold and silver no one has a crystal ball that can predict the future.

At just over $34 per ounce silver is a bargain priced commodity. Yet, come are predicting that silver will top out in 2013 between $40 and $50 an ounce. To put it differently, you should buy silver now before the spot spikes upward. The best way to invest in silver is with silver bullion bars or bullion coins. The American Silver Eagle bullion coin is minted by the US government and is popular worldwide. Larger investors should consider investing silver bullion bars. The 1,000 ounce silver bar is industry standard and is used both for trading and ling-term storage. However, 100 ounce bars can also be purchased.

Savvy investors use a reliable broker like monex.com for all of their precious metal needs. They have a sound reputation and have enjoyed over 40 years of longevity. Don’t make the costly mistake of buying from the first dealer you run into on the Internet. Check the broker’s reputation, and see how long they have been in business. Silver bullion might just be this year’s best investment.