Should Silver and Gold Be Higher?

Should the price of silver and gold be higher than it is right now. If you talk to many investors they say the run-up that gold and silver have had over the last few years is going to cause the precious metals sector to tumble.

But does that seem right?

Gold and silver both sat around dormant, slowly progressing then receeding over the last 20 years. Demand went up as the tech sector looked to buy more and more. The jewelry market isn’t slowing, although people are shifting weight away from gold and silver to more exotic metals like platinum, theres still demand for it.

With the boom in china, there’ll be more consumers for electronics and jewelry, both utilizing these precious metals. Will the sector continue to rise?

Another reason we see it continue to rise is the fact that there are now gold and silver funds that you can buy. Funds like GLD and SLV both looking to stock pile gold and silver will surely decrease the supply. Doesn’t the price of peanuts go up then?

No matter what way you slice it, gold and silver should continue to advance. Even if the democrats restore peace to the world.

technorati tags:Silver, Precious, Metals, Investing, Gold, SLV