Silver Trading

Throughtout human history, gold has been considered to be a precious thing. Kings and Queens would hoard this precious metals. Countries would measure their wealth in terms of the gold bullions they had. In the 19th century, world was on a gold standard. It is abandoned in the 20th century. But we might be again heading towards an unoffical gold standard now as US Dollar status as an international reserve currency comes into threat. Gold prices are rising as never seen before. Right now these prices are steady around $1,000 per ounce. But experts are predicting that these prices might go as high as $2,000 per ounce.

The reasons for this unprecendented bull market in gold and silver is the fact that investors are worried about the long term strength of US Dollar. Many wealthy investors are hedging into gold. When US Dollar gets weak, gold prices climb high as most of the investor taken refuge in this safe haven ultimate currency.

Most of the countries keep US Dollar as their international reserve currency for international trade and commerce. Now countries like China, Brazil, India and Russia have huge US Dollar reserves. These countries are converting these Dollar reserves into gold bullion in the international market. The supply of gold is limited. So this huge demand is driving the prices up in the market.