Will Silver Prices Go Up in 2009?

The current economic crisis has some people confused about their money and what to do with it, and the usual safe haven of silver and gold during crises like this, hasn't resulted in them behaving in the usual predictable manner, nonetheless, prices of silver and gold are beginning to go up, and that should be the case for some time.

People don't seem understand what has happened and why, as far as the U.S dollar retaining its strength when the underlying fundamentals said it should have been in a much weaker position, and why gold and silver, which usually does very well in hard economic times, were not moving up in price like they usually do.

What this is called forced liquidation. What forced liquidation means is companies and funds are forced to liquidate or sell their positions in silver and gold in order to raise cash for a whatever reasons they need to, including covering their positions.

Consequently, because silver and gold are denominated in U.S. dollars, it gave the greenback an artifical propping up as companies moved out of commodities in a number of cases in order to simply survive or get their hands on some cash.

As far as that relates to the price of silver, at this time it looks like a number of companies and funds have unwound their positions and got hold of the cash they needed to, so it seems they're starting to move back into the profitable silver and gold market, which promises to do very well in 2009, and probably into 2010, especially in contrast to competing investment sectors.

So yes, silver and gold prices will increase in 2009, and those investing in the two precious metals will find their net worth going up with them during the same period.
Silver Prices

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