Silver Spot Price History

An analysis of silver spot price history will show that its value is currently on the rise. With the value of currencies unpredictable, silver can be a valuable option.

The Value of Silver

The all time high for silver in terms of value is $50 per ounce. This occurred back in 1980. Its average for 2003 was $4.88 per ounce. Since then it has gone from strength to strength. The average value in 2010 was $18.04.

Based on the current trend, silver will continue to go up in value alongside gold. It currently has a 1:60 ratio with gold. This indicates that investor sentiment favors these precious metals.

A Solid Investment

By simply looking at the silver spot price history, one will see that it can be a worthwhile investment. While the price of gold is making the front page, silver has also increased in value dramatically. Silver’s iShares Silver Trust ETF (Exchange-traded fund) has seen a 70% increase in value.

By comparison, SPDR Gold Shares ETF grew by just 10% in 2010. ProShares Ultra Silver has also gained 150% in 2010. A through study of the market will show that its value has been increasing. In terms of returns, it is ProShares has reached 200%. However, it is unlikely that it will reach the 1980 levels again.

Long Term Prospects for Silver

Since 2000, its value has been on the increase steadily. Part of the reason is the finite supply. Over 729 million ounces of silver were utilized for fabrication in 2009.

According to statistics, 353 million ounces of silver were used in industrial applications. As demand increases, the metal’s value will go up. If you invest in silver, you will get higher yields in the long term.

What is a Silver ETF?

A silver ETF refers to a silver exchange traded fund. This permits an individual to engage in trade without physically handling bullion or coins. ETFs are traded like stocks. These act like securities that monitor the commodity price. This is based on silver bullion in future silver contracts or derivatives.

The nice thing about ETFs is that you can get in and out of investments rapidly. You can buy or sell based on the fund’s monitoring of the market.

If you are going to invest in silver, it is vital that you know something about silver spot price history. Being aware of the trends will help you make proper decisions when to buy and sell.