Industrial Demand Set to Drive a Rebound in Silver Prices
May 04, 2011 at 06:00 AM EDT
After a shocking upward climb to nearly $50 an ounce, silver prices have been walloped over the past two days - plunging to $41.50 an ounce in afternoon trading yesterday (Tuesday). But regardless of this sharp decline, now isn't the time to panic. After all, the U.S. Federal Reserve has given no indication that it plans to tighten monetary policy anytime soon, and as a result the dollar continues to weaken. That bodes well for all precious metals, which serve well as a store of value. Furthermore, silver has another trump card - its widespread use in industry and manufacturing.