Silver Prices Will Continue to Rise

Even though silver prices have reached a 30-year high recently, it hasn't come close to increasing to its potential, and should outperform gold, even though its precious metal cousin receives far more financial media coverage than silver gets.

There are several reasons silver prices will continue to rise, and that includes industrial uses and its secondary value as a form of currency, and/or protection against inflation and the debasing of the U.S. dollar, or whatever particular currency you may use.

What makes this even more a surety today is the ongoing so-called quantitative easing by the Federal Reserve which always weakens the U.S. dollar, but helps the overall commodity market by increasing the price of the majority of them because they are, for the most part, traded in U.S. dollars. The weaker the dollar or currency, the higher commodity prices will increase.

Gold is the most important of the metals used as a hedge against inflation, but silver shouldn't be underestimated in that regard, as it should outperform gold as measured by percentages over the next year or two.

That isn't a poor reflection against gold, which should be part of everyone's investing portfolio at this time, but a reflection of silver lagging behind the move of gold and poised to soar to catch up, as it has been doing lately, with strong momentum.

Silver is primarily an industrial metal though, and it has so many uses it's difficult to go into all of them, or follow the variety of products it is used in.

One strength it has is its growing use in the medical field, which is a recession-proof industry, and holds demand in all types of economic conditions.

So if one part of the economy is suffering, we can be sure that around the world silver continues to generate demand on that fact alone.

This makes silver one of the best commodity investments at this time, because of its dual purpose and use, and it being depressed for some time and starting to get traction and regain momentum.

Silver isn't close to being played out yet, and will probably run along with its larger precious metal cousin, gold, until the commodity bull market runs its course, which is still years away.

That doesn't mean there won't be corrections. There always is. But over time silver will remain one of the top investment performers, and prices will continue to soar for quite a long time into the future.