Skip to main content  See also:  Does prospect of European
deflation weigh on silver price?  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 centra