2011 saw extreme volatility in precious metals markets. Even greater magnitude price swings in silver were not out of character, as the white metal managed to end with a slim lead after first dropping by twenty percent, then rising by nearly seventy percent.
Many viewed mid-Spring 2011 as the best opportunity to cut losses by selling their silver holdings, but those who weathered the storm were rewarded with returns even better than those shown by big brother, gold. 2011 marked a difficult year for many asset classes, but silver bested most commodities during periods of 2011.
Market watchers still maintain positive precious metals outlooks, since the printing presses continue to churn out fiat currencies, making increased inflation ever more likely in the new year. Savvy investors will be looking for a possible sell-off in all investment vehicles during the first quarter of 2012. European markets continue to drive investment strategies as the quest for for financial stability endures. The response of global markets will provide ample precious metals buying opportunities throughout 2012.
Refinancing of bonds has already begun and remains the most likely scenario to shake the markets during Q1 of 2012. Silver and gold have both come down from their 2011 highs. Current fiscal wisdom speculates that the bull market for precious metals is not yet at an end.
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