Gold and silver both have been hit hard. The dollar, in a surprising move is on the way up? Banks are paying back their TARP “loans” and the global economy is questionable. Maybe all that money that the government printed isn’t going to suck the dollar into oblivion.
China isn’t giving the bullish reports (although the china bulls are calling for amazing growth over the past 2 years) there is a slow down on the horizon it would seem. The stock market is falling backwards, the dollar is advancing and precious metals like silver and gold are falling by the wayside.
Just check out this article about SLV and GLD ETFs. They have been slammed along with the price of silver and gold. Once what was on a tear is now on the decline. So what gives?
Could it be that all the hedge funds, mutual funds, and general investing public is taken profits after a rediculous upswing that cause outrageous ratios that didn’t make sense? PE’s that made 10 years down the road, but really, willing to by GE at a PE of 30? Doubtful.
OK, so we exaggerate.
But honestly, with the worldwide economy cooling, is it wise to take your money out of precious metals? We thing not. We think it’s a perfect time to buy precious metals. Prices are retreating all over the place, because the economy isn’t as great as everyone thought it was. Who cares? Why not get in on some deals and buy silver at these reduced rates while China and India prepare for the growth they promise?
The recent stock market rally has allowed investors to regain some of the losses they endured last year. Commodities like silver and gold are no exception. You’d think with a strong equities martket they would be, but nope, this isn’t the case.
Instead, with the dollar looking to weaken based on a fed that continues to print money, precious metals may be a good buy. So how do you get into precious metals?
Well, one way is to buy ETFs like the silver trust ETF SLV. These types of funds allow you to directly invest in silver and gold without having to buy the precious metals themselves. But the question is, will silver, and likewise SLV be abel to survive the market rally? We think yes. Even though gold and silver have had amazing gains, we think they will continue to do so.
Although this is just our opinion, you have to look at what might cause this. Inflation, due to all that money printing, may cause investors, who like to hedge against downside risk of their dollars being worth less, by investing in silver. Others may want to play the silver game based on the fact that china and markets like it, namely india, are expanding at a rapid pace, and all those people are going to need things with gold or silver in them.
That’s why, it may be prudent just to keep a little SLV or GLD in your portfolio for the time being.
Some may think that buying gold and silver right now is crazy. You may think that the markets are possibly on a turnaround and the dollar isn’t doing so bad. Buying precious metals at a high point would be crazy.
But what about the rest of commodities around the world? And better yet, the worlds use of those commodities.
It’s increasing, and increasing at a huge rate. China and India, named way too many times to count in this blog and similar financial blogs, are all about buying the commodities that China and India are buying and need to survive. Some of those commodities are gold and silver, which you may want to consider buying.
Buying silver now may not be the worst idea. Oil is on the rise, stocks are chaotic at best, and the dollar, although rebounding on news that the fed is done lowering rates, is still not as nearly as strong as it’s closest rivals. You need to consider the rest of the market, not just those historical indicators of the price of silver.
There are a ton more investors in the game now and with Silver ETFs gaining popularity along with all the other sector ETFs out there, you may want to think about getting into silver right now.
If ever there was a low point to buy silver in this run-up, now would be the time. High $16 range right now.
Silver has dropped dramatically in the last few weeks due mostly to profit taking and people calming down about the economic conditions. But should people think that the worst is over and start pulling money out of precious metals and other commodities?
Well I don’t know about you but I don’t think the economy is ready for a huge return to glory. Housing is still slumping, the dollar is still weak, and the Feds are looking towards inflation and recession talk. That doesn’t sound like a huge turnaround to me.
On top of that, world economies continue to grow with China and India leading the pack. Silver, used in many applications, not just for fancy jewelry, will continue to be in demand while the worlds mining companies push to keep up with it.
That and silver ETFs still buy more and more silver making less supply on the open market for those countries to purchase.
Buying silver now is still, in our opinion a good bet. Be cautious of spikes and look into precious metals ETFs and mutual funds to increase your position.
The stock market is rebounding, the dollar is showing signs of strengthening, and banks may be doing a little better. A little. So should you be taking your money out of commodities like silver and gold?
The recent drop on silver prices may be a little premature but everyone new it was going to happen sooner or later. There wasn’t really a huge drop in production or spike in demand because of some discover about silver. It was a run up because the price of most commodities was increasing such as oil and especially gold.
So is this run-up done? Well that depends on a few things. Sure there will be price increases based on the economies emotion to financial news. But if you believe what many feel, that the huge growth in countries like China and India will keep demand on all the worlds resources, including silver, then investing in silver is still a smart bet for the long term.
Buying silver bullion isn’t your only option and may not even be the best one because of the tax implications of owning it. You may be better off buying ETF’s like iShares SLV Silver Trust ETF. You can trade it easily online and can hold it for the long term and take advantage of lower taxes should the price of silver keep increasing.
So that begs the question of Blog Silvers readers. Are you still investing in silver?
Silver, per troy ounce, is up to $18 a share, surpassing highs that it hasn’t seen for more than 25 years. Shares of the ETF, SLV, is up 20% this year to $179 a share. Silver is on the rise following golds all time highs.
We here at Blog Silver have been tracking silver for a while, and have been very bullish on silver both with the dollar declining, and with China expanding with the rest of the world, silver is looking like an easy way to get into the precious metals market. It might be tough to get into the gold market, with the price of gold being over $900 per ounce, silver is much easier being under $20.
With silver being included in a lot of computer parts, and the rest of the world catching up to America in terms of technological advancements, the world will need a lot of metal to keep up with all those advancements. One of those metals, easy to get into, is silver.
It happened, with all this writing about silver heading past $17 and ounce it finally happened. Although it did retreat back below $17 to the high $16 per troy ounce, silver saw 17 and it’s only a matter of time before it creeps back above, or so you would think…
With the economy showing strong signs of not knowing what the heck it wants to do, you’ll begin to people pulling their money out of the stock market and putting it into safer investments. One of those investments, as it has historically been, is precious metals like gold and silver.
With China and other developing nations gobbling up commodities lowering the available supply out there, with ETF’s like SLV making it easier for individual small investors to buy precious metals, one would think the price of silver would rise.
We think it’ll go to $20 soon enough, and if you’re looking for a good play outside of the world of stocks and bonds, you may want to look into buying silver.
The price of silver edged closer and closer to $17 a troy ounce at the close of last week. The world economy is still fairly volatile but the price of precious metals remains a pretty fairly bullish market, continuing the run that started over two years ago.
As earnings come out for several large companies in the US the dollar, and more so the US economy will help dictate if the world still wants to keep it’s money safe in things like precious metals (although not always that safe).
Time will tell if the price of silver can surpass the $20 mark, which doesn’t seem too far fetched as the demand continues to grow around the world in newly developed nations such as China, and with the economy still so volatile.
