Silver had a great start to the year 2016. In December of 2015, the precious metal was trading at just over $12 per ounce. However, as the global stock market fell in the beginning of this year, safe haven investors started to flock toward gold and silver, sending the price of precious metals soaring. As a result, the commodity is now trading at well over $15 per ounce. However, it's starting to start a big conversation. One one side of the fence, there are those that are arguing that silver can't get any higher. On the other side, they're arguing that silver is going to climb. So, which one's right? Today, we'll talk about what causes movement in the price of silver, what we're seeing around the world, what we can expect to see from silver moving forward, and how binary options traders can take advantage of the trends. So, lets get right to it…

What Causes The Value Of Silver To Move

Silver, like any other commodity is largely dependent on the law of supply and demand. This law dictates that when supplies are high and demand is low, the value of the precious metal must fall. Adversely, when supplies are low and demand is high, the value of the commodity must climb. However, unlike most other commodities, silver is considered to be a safe haven investment. This adds a bit of complexity to the movements in value of the precious metal. Essentially, when economic, geopolitical, or market conditions become concerning, consumers, investors, and businesses alike start to look toward the precious metal as a way to keep their money safe. This leads to large increases in demand for silver, sending the price upward.

What We're Seeing Around The World

At the moment, conditions around the world are likely to support price growth in silver. Here's what we're seeing…

  • Economic – When it comes to global economic conditions, we are definitely in the midst of some concerning times. Unfortunately, several economies around the world are on the brink of disaster, and have been for quite some time. In fact, to combat declining economic conditions, many countries have pushed interest rates into negative territory and adopted other monetary policies in an attempt to save their economies.

  • Geopolitical – At the moment, geopolitical conditions are a major concern for consumers, investors, and essentially, everyone else. Unfortunately, ISIS is carrying out terrorist attacks quite quickly. In fact, over the past several days, we've seen attacks on the Brussels Airport, Brussels Metro Station, and even at a soccer game in Belgium. As these attacks continue, it is almost guaranteed that military action will be taken.

  • Market – Between the three big areas, the market is the one that is doing the best at the moment. However, it's not perfect either. Recently, we've seen incredible growth. However, this growth is leading valuations incredibly high, which will likely put resistance on the market. This on top of economic and geopolitical blues can send the market tumbling at any moment.

What We Can Expect To See From Silver Moving Forward

Based on everything mentioned above, I have a very bullish expectation of what we can expect to see from the value of silver moving forward. The simple fact is that conditions around the world are likely to send safe haven investors toward the precious metal, leading to gains in demand for and ultimately the price of silver.

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, it's our job to predict price movements in the market. Considering current global conditions, the value of the commodity is likely to decline. As a result, traders should be watching the commodity closely. When it reaches resistance, or at any time geopolitical, economic, or market concerns pop up in the news, traders should purchase call options to follow the trends up to the profits.

What Do You Think?

Where do you think silver is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Wikimedia]