Investors will tell you that both gold prices and silver prices can be rather volatile from day to day: one day they seem to surge, and the next they plummet. However, if we take a look at gold price history and silver price history, we start to see a different picture. 

The past 5 years have shown gold and silver to be surprisingly safe and economical investments. In fact, from 2003-2010, the price of a piece of gold bullion has increased by 180%. This translated to an average annual gain of 36%. Silver prices have had an even more positive growth. The price of a piece of silver bullion has increased by 290% since 2003, meaning that the average gain has been 58% per year. If we widen our scope to look at the history of gold and silver prices over the past 10 years, the story is even more impressive. In 2001, the price of an ounce of gold was worth $270. Today, an ounce of gold is worth $1120. Silver was worth $5, and today its worth $17.

These significant leaps in gold and silver prices are especially unexpected in a time of widespread global recession. In fact, the jump in prices has been so dramatic and so surprising that many investors are speculating that this upward trend in gold and silver prices is a direct effect of the weakening dollar.

 At a time when the United States Economy seems to be precariously held together by a governmental stimulus plan, people are looking for more stable and traditional investments. The theory is that the more people are losing faith in the worth of their paper money, the more they feel compelled to invest in precious metals. Precious metal, being useful in its own right, is reliably valued for its superconducting properties as well as its popularity in jewelry.

While late 2008, early 2009 showed a significant drop in price for gold and silver, they have both made such a significant comeback that most investors believe the lowest lows are far behind us. In fact, Franklin Sanders of The-MoneyChanger.com predicts that the US dollar will continue to sink while silver and gold prices will continue to climb in the same way that they have been climbing: with day to day ups and downs, but an overall and long-term positive incline. So don’t be worried when gold and silver prices suddenly jump up, down, up, and then back down again. Although they may be in a trading range market right now, most are forecasting blue skies for gold and silver.