Bullion Junkie

East Indians love gold (there is no doubt about that). And why not? Gold looks beautiful, is a great store of value, and is a universal currency sheltered from the drastic rise and falls of the economic tide. But this Diwali, if you are an east Indian investor, you may want to look beyond gold towards, perhaps, silver bullions.

Gold is trading at nearly $1068 an ounce, making it an extremely expensive time to start looking at gold for either investment purposes or jewelry making. However, as a sharp-eyed investor, I would focus my eyes on silver as silver prices have risen almost 60% since earlier this year. Now compare this number to the price of gold that has risen only 24% since January of this year.

Industrial and investment demand is driving the prices of silver bullions up with signs of global economic slowdown quickly waning and signs of third world industrial activiting rising again, the prices of silver have surged to meet the demands and investor expectations.

Adding to the momentum of rising silver prices and demand is the rise of other precious metals such as copper, lead, and zinc. All of these metals produce silver byproduct during the processing of these base metals. When the economy slowed down, most base metal produced clawed back production thereby leading to a state of shortage. With increased production rapidly on the rise, there are still no signs that supply will meet demand any time soon. What a great opportunity to be investing into gold and silver bullions.