Do you know about trajectory of the price of silver? There are economic analysts who fear a perceived shortage of precious metals in the future. They paint apocalyptic visions of people waiting in line trying to buy silver at any price, without a single gram of the precious metal available on the market a permanent shortage. As scary as it sounds, it’s an old story.
This can be traced back to at least 1998 when analysts began to argue that silver was entering a state of permanent scarcity. Surprise, surprise – it didn’t happen. What does this mean for investors?
Don’t listen to the so-called experts who have been promoting the lack of silver for years. Given the relatively large reserves of the world, it is actually difficult to imagine a long-term shortage of white metal.
Silver Bull Market
However, those buying silver bullion as an investment should know how volatile silver is and expect better times ahead, especially in the current economy. You must sell the silver. Silver is in a bull market
Many countries have issues with the US being the de facto currency they call their own. The US dollar recently rebounded to 130 basis points, a headwind for silver and its valuation.
If you’re considering silver, it’s worth looking at what gold is doing in the market. Silver stocks actually outperformed gold stocks.
In a bull market, corrections and withdrawals are expected. It should not be feared but accepted. So if you want to buy silver, now is the right time to do it.
Although not money, silver is used as an investment. If you compare the silver price Melbourne with silver prices elsewhere, you will see that there is no difference. Silver, like gold, is a monetary asset that can be used as a hedge or safe haven against risk.
However, silver is used more in the industry; therefore, it behaves more like a commodity and is more sensitive to the business cycle than gold. Many people believe that the silver market is highly manipulated because it is less liquid than the gold market or other markets.
Silver Manipulation
Market manipulation, also known as price manipulation, can generally be defined as the conscious effort to control prices. This type of manipulation exists in the financial markets when traders try to influence the markets. This may be responsible for some of the short-term differences in asset prices, including the price of silver.
However, there is another, more specific meaning. Manipulation is intentional behavior designed to deceive investors by controlling or artificially influencing the securities market. It involves manipulating quotations, prices, or trades to create a false or misleading picture of demand for an asset.
Like gold, silver has had a remarkable year. At the end of November 2020, it reached $22 per ounce. It then rose 26% to trade at $27.80 on January 6, 2021. It has been a strong 6-week rally and this rally should end soon.
And maybe it’s time to sell that silver gold if you have it. However, some analysts believe that the silver price in Melbourne will continue to rise and are advising investors to buy silver and ride the wave.
Final Words
If you look at what happened in the first weeks of January 2021 after an impressive up to $28, you will notice that the price of silver is falling. It’s a full 10% off. People are afraid of it, especially since it happened within a few days without warning.
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