At 10:35 a.m., silver prices fell 2.46% to trade at $15.18 per 5,000 troy ounces – the amount of silver traded on each futures contract.
The meeting highlighted concern over the global economy's recent slump. That drove silver investors to believe the U.S. Federal Reserve wouldn't raise rates next month. Investors typically look for higher-yield assets when interest rates are high, which can send silver prices lower.
But silver reversed today as U.S. and Chinese markets, which represent the two largest economies in the world, slumped to their lowest levels in years. The Dow Jones Industrial Average cratered 2.1% yesterday, marking its worst one-day performance since Nov. 9, 2011. China's benchmark Shanghai Composite Index settled 4.3% lower, near the depths of last month's $4 trillion sell-off.
Despite the fall in silver prices today, the metal is still a healthy long-term investment.
You see, many traders don't realize that silver isn't meant to be played for explosive gains. In general, bullion is meant to diversify your portfolio and provide an asset uncorrelated to broader market volatility.
According to Money Morning Defense & Tech Specialist Michael A. Robinson, silver is a form of insurance in case disaster strikes.
"I have physical silver," Robinson noted. "I might have bought some at the top, but I don't care where 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."
There are plenty of benefits to buying physical silver, but the biggest ones are how it can diversify your portfolio and protect you when markets fall.