Every silver investor is wondering the same thing; will silver continue to see such sharp falls? The answer… who knows? I am not going to be the one to tell everyone that silver will not fall even more than it already has. I will go out on a limb though and say that in the long run, the white metal (or the “devil’s metal” as some call it) will be fine in the long run.
Why is Silver Continuing to Fall?
The result of the recent slide in silver can be due to a number of things. First and foremost is the failing economy. Not only is the economy in the toilet, but it seems to be getting worse off everyday. That doesn’t bode well for any investor.
Yes, many investors are putting their money into silver, both to keep it safe and to gain a profit, but there is only so much money out there for investors to invest. Let me put it differently, investors were able to sell stocks and pull money from other areas to put into silver. That is not the case now, as most investors don’t have anything to sell because the market is plummeting, or because they have already put everything they have into silver and other precious metals.
Another factor hurting silver right now is the price of gold. We all know that the price of silver is often tied to what the price of gold does, however, it was thought that silver would start to break away from gold a little more and become a bit more independent. While that has happened some, we still see that silver is tied into gold more than we expected. Gold is in the midst of a massive sell off as investors try to cover losses in other areas. Gold is dropping, therefore silver looks to be following suit.
As of the writing of this article (2:37 pm EST, 8:37 am PST) the price of silver is hovering just over $30 per ounce. That is a far cry from the $44 per ounce price range that silver was at just a few weeks ago, and miles away from the projected $50 per ounce price range that many expected was about to hit.
However, I still have a nagging feeling that silver may shoot back up very soon. Silver is the most volatile of all the precious metals, and the price is likely to shoot up tomorrow or next week. However, the price is also just as likely to drop again. Silver investors are on edge, but anyone who deals in silver knows the game. Volatile metal means volatile prices.
What Should You Do?
I am going to answer this the best I can without trying to sway you one way or another, the choice needs to be yours. If you look at the facts and look at other areas of silver, then you can definitely make an educated guess.
You have three choices in my opinion:
- Sell all your silver ASAP. Get rid of what you have, try to retain some of what you invested and walk away until silver stabilizes or until you feel more comfortable with the white metal as an investment. Remember this though, silver will probably never be as stable as you want it to be i.e. volatile.
- Hang on to all the silver you have and wait the storm out. Silver may jump back up in price right away, and in the long run it is still a very good investment option. If you can afford to hang on to your current silver investment, then this could be good for you down the road.
- Buy, buy, buy. Yes that’s right. Take this opportunity to buy as much silver as you can, especially at these low prices. Remember, silver is still expected to go way up in price, economy or not. While I can’t guarantee this, buying silver at such a low price may be a fantastic way to accrue a great return of investment. It will also keep you money safe as it continues to act as a safe haven for man investors.
You have some thoughts and facts laid out for you. The choice is yours. Whatever you decide, good luck! Make sure you do your homework and really get all the facts before you make any decision regarding your silver investment. Silver is volatile, but it is more than likely going to stick around for a long time and remain a decent investment for most.