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We have recommended that you buy silver at the current low levels for months.
Not necessarily because silver's due for a huge spike – although that case was made in our 2015 silver price forecast – but because if you buy silver in small allocations, it can act as insurance for your broader portfolio in case markets go south.
What may be hard for some investors to stomach, however, is that silver prices are highly volatile. In 2014, the spot price of silver swung between a closing high of $21.965 in February and a closing low of $15.315 in November – a 28.6% drop.
And even in 2015, the same volatility persists. Silver prices this year have been up as much 16.7% and down as much as 1.4%. They're currently up 6.5% on the year, closing yesterday (Monday) at $16.705 an ounce.
When looking at this silver price volatility, it's important to remember that you're not going to buy silver for the home run.
"I have physical silver," Money Morning Defense & Tech Specialist Michael A. Robinson said earlier this year. "I might have bought some at the top, but I don't care what the price goes to; I will not sell that physical silver. It's there for a reason – just like I have insurance on my car, I have insurance in case of a disaster."
But even if that's not enough to help you cope with the violent swings in silver prices this year, technical indicators are slowly aligning to make a compelling case for investors to buy silver.
Here's why…
Buy Silver Ahead of Favorable Technical Indicators
Silver is a much more thinly traded market than its sister metal, gold. There is also a lot of overlap in the profiles of traders who buy silver and gold.
Both metals serve as safe-haven assets. Say there's some geopolitical tensions abroad, or the markets panic – you are likely to see a lot of money pour into the gold markets. And residual precious metal interest will then find its way into silver as well.
Since trading volume for silver is much smaller, it tends to get a bigger boost than gold prices when these market events happen. But, similarly, when investors flee gold, silver will crash in a much more dramatic fashion.
I've been buying silver for two years (in smaller amounts). I cannot afford to go out and buy several "monster boxes" these days. As you can see I am committed to "survival". This implies that I believe in some kind of huge problem hitting America. That's right. I firmly believe the dollar cannot last under the given pressures. I have also spent the last two years (and ongoing) in a detailed study of the worldwide silver history and situation. I love silver and don't want anything to do with gold and other so-called precious metals. I'm developing a new interest… Read more »
King Dollar will continue to rise. Don't bet against the dollar. Silver would be a great investment if there is a currency crisis, but that is not going to happen. At least not for a long time.
'King Dollar' has no clothes and has been wearing a brittle, rusty crown for some time now; there's not much integrity left within its structure, its collapse/death is inevitable in the near future and it cannot be stopped even IF the banksters have a change of heart and try desperately to save it.
Simply put, there's not much time left for the 'Kingdom of the Buck'……
SILVER COINS HAVE A PLEASANT RING TO THEM I like silver and prefer U.S. Minted coins, pre-1964. They are 90% silver in content and reliable if not old coinage. In a crisis, old silver coins are more likely to meet with acceptance and confidence. You might even be able to use silver coins in exchange for necessities. Like to hear the jingle-jangle of silver coins. It will take quite a financial or currency crisis to drive the public into precious metals and especially, silver coins. Until it does, most consumers and investors don't know what gold or silver even looks… Read more »
Back in the 80s it was a common thing in Texas to see a gas station displaying a hand written sign: "1 gallon for a silver dime" Gas was about $1 a gallon. Silver, about $10 an ounce.
Yes it is true that many folks in the economy today are not familiar with silver and the market for it. For that reason, any new demand from this potential market pool will take some time to become educated, so believing that this group of the uneducated can drive silver prices up fast would not be valid. ON the other hand, with the volume of it on the market being so low, any alert about price rises should result in some quick spikes. For now, I am of the mind to purchase and hold as some are suggesting, since I… Read more »
I have also started recently buying gold and silver. I believe the spot price currently is somewhat of a mid way, neither up or down. Some say it's about to drop to US $700. or less, and others say it may go as high as $17,000.00 an ounce. We will definitely have some direction of it within the next few months. My feeling is that it will drop and then go ballistic. The problem with this, is the actual timing so that one can get it right and work within the system profitably.
If a bond market collapse, or currency reset, or severe stock market crash, or a major terrorist attack happens – depreciation of assets priced in us dollars will fall – hence the Gold $700 amount. Gold is a storehouse of value. As talk and preliminary action of IMF/World Bank SDR bailout to nations proceeds then Gold could go to $17,000. The SDR is a new fiat money scheme (NWO) with a basket of currencies including Gold to keep the game going. Gold is a long-term insurance NOT an investment to maintain purchasing power. Most suggest 10 -15% of net worth… Read more »
Each time I read your articles a tiny dot appears on my screen. This never appears
on any other article. Are you monitoring my reading activities? Doesn't make me
nervous, just assume you are doing it for marketing purposes. Please let me know.
If you are not doing it, you need to know that someone is monitoring your site.
Thank you.
Ben Jaggers
Ben,
It's nothing we're doing. In fact, I have never seen this phenomenon. But we'll look into it.
-Dave Zeiler, Associate Editor, Money Morning
I noticed the same dot . One may ignore iit thinking it is dirt from a fly . Great attention Ben .
IF A CAPSIZE IS DONE THERES ONE THINGS AMERICANS DO THE BEST THAT BOND IN TIME OF NEED ..BUY METALS SILVER A GOOD INVESTMENT SO IS AMERICAN BONDS BECAUSE WHEN THIS OVER AS HISTORY REPEATS AMERICA WILL PRESERVE BECAUSE FREEDOM IS MORE THEN VALUABLE THEN REST BESIDES LOVE AND LOYALTY & IN THIS REASON PRICE DEMAND IS SOLID AND IT REAL MONEY THAT ALL 100% AMERICANS CAN BUY INTO….BUY SILVER
Once I have silver coins how do I exchange the for the currency of the day?