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spot gold and silver prices The explosion in gold and silver price If you have been following the world news recently, you will have noted the surge in spot gold and silver prices over the last few years. In fact, over the last 3 years, gold has gone from $650 per ounce through to a peak of over $1900 this year - that is almost a threefold increase in 3 years. The rise of silver has been even more spectacular, having been a mere $7.50 in 2008, and peaking at $49 this year - a sixfold increase. Anyone who saw the opportunity in spot gold and silver prices will have made a massive growth in their investments which is an incredible feat given what the state of the economy has been.

The surge in the value of the spot gold and silver prices has been fueled by two things. Firstly, the flight for safety from riskier assets - gold and silver have always been seen as solid investments, far more than stocks and shares, or even paper money. This has been the case for hundreds of years. When other investments lose their value, investors, move onto gold and silver, driving the demand and the price even higher than before. Secondly, gold and silver are valuable in their own right as industrial components. One business area that you can see is growing is in electronics - mobile phones, LCD screens, DVD players, laptops, computers, all have a substantial amount of gold and silver inside of them. The natural ability for gold and silver to resist corrosion makes them ideal for many needs, and we are not looking at a drop in demand for mobile phones anytime soon. The combined reasons have led many economists to predict that spot gold and silver prices will continue to travel skywards next year, going over $2000 and $50 per ounce and even approaching $3000 for an ounce of gold and $100 for an ounce of silver at the end of 2012.