Skip to main content
  1. Life
  2. Home & Living
  3. Hobbies

Does prospect of European deflation weigh on silver price?

See also

I'm not an economist and I'm not an expert on trading in precious metals on the commodity market. But I do buy and sell sterling silver pieces so I watch external market forces that impact my business.

A general rule I believe in is that as the rate of inflation grows, the price of precious metals may rise as buyers try to develop a hedge against inflation. Right now in Europe, central bankers and economists are worried about deflation. Even though the United States is in a different financial position from Europe, it is affected by world events. So, to my way of thinking, prices for precious metals will not rise significantly as long as deflation is a worry. Of course, some significant world event like a war could change things but if that does not happen, the world price of silver might be stagnant for a while.

Prices of precious metals did bump up a bit this morning in response to actions taken by European central bankers but similar actions in the recent past have not had a huge impact. So, the silver market may just drift sideways more or less until this situation sorts itself out through natural market mechanisms.

Here are good summaries of current events related to this topic:



  • Randy Travis
    Randy Travis returns with 'Influence Vol. 2: The Man I Am' in August
    Today's Buzz
  • Alternative medicine
    Alternative medicine: Remedies to make the bugs in your body go away for good
    7 Photos
  • Beach body
    Fitness: Earn your beach body badge with bootcamp classes
    10 Photos
  • Back to school
    These 10 items are sure winners on your back-to-school shopping trip
    12 Photos
  • Izabel Goulart
    Izabel Goulart walks the runway with Studio F at Colombia Moda
    19 Photos
  • Ombre' technique
    Go for the gusto: What ombre' technique are you?
    5 Photos