With all the ups and downs of the precious metals markets lately there has to be some people making money on all that volatility right? Right. When theres volatility theres money to be made for the options world. I recently found a fascinating article about some of the key factors contributing to the volitility of the precious metals market and in particular silver.
Silver has seen it’s highest increase as well as highest decrease inprice with the span of about 4 months starting in February. The article states that speculation rather than demand have boosted prices leading sporadic trading methods to take over and prices that don’t seem to make sense.
Although the overall tone of the article was bullish they wanted to emphasize that due to the ups and downs that come with speculation of precious metals they suggest playing options on the up and downside to make money in the current silver market. Silver has fundamentals that will keep it’s price rising, namely demand in developing countries coupled with a supply that can’t keep up and silver ETFs like iShares SLV that store away silver bullion, the current market is dangerous for straight buy and store silver investing.
Read more about the article at:
Resource Investor – Commentary – Silver Rush May Be Over but Volatility Means Fertile Ground for Option Sellers
technorati tags:silver, investing, options, trading, ETFs, precious, metals
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“Silver has fundamentals that will keep it’s price rising, namely demand in developing countries coupled with a supply that can’t keep up and silver ETFs like iShares SLV that store away silver bullion…” I couldn’t agree more, and with the iShares Silver ETF planned to increase the amount of silver it owns makes the fundamental demand for silver even greater.
“The current market is dangerous for straight buy and store silver investing.” This I don’t agree with because the demand for silver is out pacing the supply and anyone investing in silver should profit.
Agreed, the wide use of silver in electronics, the fast development of the two giants China and India and the dwindling stockpiles of silver should continue to push the price of silver up in the next few years on the whole.
Silver is definitely an investment that everyone needs to be considering. Our latest article points out that silver is the only commodity in this boom that hasn’t reached an all time high. With inflation since, i think the 1980s of that high, you’ve got to consider that silver is here to stay and rise.
And with the knowledge of the use of silver, why wouldn’t you see a rise in prices until the demands can be satisfied?
I’m going to be agreeing with you all…