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Silver prices at a 30-year highâ€Ž

21 February 2011 11:27 (UTC +04:00)

Silver is in high demand and the price is currently $32 an ounce.
"The silver market is going crazy right now, a lot of people selling, a lot of big dealers buying it, melting it down,â€ said Ray Smith, owner of RJâ€™s Coin and Currency. "Some people have been basically what you call ’sitting’ on the silver and they’re seeing prices that they haven’t seen in 30 years, so they feel itâ€™s a good time to sell now."
Smith said many people are coming into his shop to sell old coins with high silver content. "What they call junk silver - quarters and dimes from 64 and back were 90 percent silver,â€ Smith said.
For those types of coins, Smith says he’ll pay 20 times the face value.
Silver prices have soared since the crisis in Egypt began in January. People purchase precious metals believing theyâ€™ll retain their value if American currency stumbles.
"A lot of people have lost faith in our dollar. We owe a lot of money around the world,â€ Smith said.
Smith believes the value of silver will continue to rise, estimating that it will break $50 an ounce. â€œIâ€™ve told people if you donâ€™t need the money, donâ€™t sell it,â€ he said.
The price of the metal palladium is at a 10-year high and the price of gold is going up too. Gold is selling for just under $1,400 an ounce.