Precious metal investments: news, consultancy, trends, reports & more!
HomeMarket WatchHard AssetsInvestor's GuideDownloads
 

How Silver Could Crash




It's not just gold that can drop impressively.

Silver has fallen below its 26-27 $ support line in April 2013. It's a huge fall after having reached a peak price above 47 $ in April 2011.

After falling below the strong support line between 26-27 $, silver dipped and landed between the range of 22-23 $.

The next support line for silver is around 20 $. If silver slips below this level, then the grayish shiny metal can head even lower - it could crash below 10 $, to the next support line.

Currently, silver is trading at around 23-24 $. Small investors, stackers have boosted physical silver demand. On April 15th, more American Silver Eagle coins were sold than in the entire month of March!

While gold dipped sharply in April, silver (despite being a much more volatile commodity) held on surprisingly well, holding above 23 $ most of the time.

If silver drops below 20 $, then an accelerated silver crash might occur and it might not stop falling until it passes the 10 $ level.

Several factors could bring silver down and it's not just COMEX silver selling and weakened investor sentiment (but not in physical silver, as explained above) and it's not just the link to gold's cheapening.

The global economy is suffering and major industrial powers are producing less and less goods in which silver is being used. For example, China's and Germany's industrial production rates have been shrinking - first of all, because their client countries are suffering of crisis and aren't buying goods from them.

As a result, less physical silver is being consumed industrially. Therefore, lower industrial demand for silver.

As we know, silver is being used up industrially in immense quantities. From the automobile industry to electronics and even the healthcare industry consumes massive amounts of silver. This consumption is diminishing and it's a negative factor to silver's price.

The crisis seems to favor gold a lot more, because weaker industrial demand drags silver prices downwards, whereas gold is rather preserved and exchanged than consumed.

Cheaper silver in 2013 or 2014 should stimulate investors to buy more.

The industrial demand may pick up later (boosting silver prices) and the currency crises will amplify (affecting those who hold their savings in currencies).

This period of cheap silver may not return and a sharper increase in price will follow as soon as it hits "rock bottom".

Watch for cheaper silver prices and seize the opportunity to buy physical silver.

This metal is a great hard asset. Aside gold, it's recommended to own a decent amount of silver in your portfolio.

Precious metal portfolio diversification is vital and, it's silver that comes right next to gold when investing in rare metals.

Silver bears an immense profit-making potential, meaning that if you invest a certain amount of money in silver, it will bring you a lot higher return than if you'd invest in gold. Silver can easily double, triple or quadruple your investment over time. You just have to know when to get in and when to get out (if you want to sell at all).

Now, there might be a tremendous opportunity to buy this cheaper shiny metal. Prices are relatively low and if silver falls further down, you will find yourself a rare opportunity to invest.





comments powered by Disqus

 
Prime Values on FacebookPrime Values on Twitter

about us    terms of use    privacy policy    disclaimer    partners    advertising    contact us