What drives the price of silver?

APMEX American Eagle Silver CoinsWe recently hosted a Facebook chat with Miguel Perez-Santalla (MPS), VP of purchasing at APMEX. Miguel has over 30 years of experience in precious metals, foreign currencies, bonds and commodity futures. That chat was focused on buying silver and we got a couple of interesting questions.

Q: What drives the price of silver?

MPS: The biggest driver of silver right now in investment money. Current supply of fresh and recycled silver is meeting demand, however high leverage from investors in the market is greater than usual production. So the price of the white metal remains high. Physical demand has also grown from the public in their desire to acquire hard assets. The basic fundamentals, electrical, photography, photo voltaic, silverware etc are not the drivers. Still the price will go t to wherever highest bidder is.

Q: What is the best place to store precious metals?

MPS: If you were to consider foreign vaults, I recommend Switzerland. The country is a virtual fortress and they have a history of non-involvement in global affairs which makes them the safe haven of choice for the global investment community. But honestly, I would keep my stuff close to home!