Investors are slowly beginning to regain their trust in the “white” metal and the steady progress of silver prices this year is enough reason to be optimistic. The following months could be much better as fundamentals remain strong and the course of the price chart is technically aiming upwards. All things considered, 2014 promises to be a very interesting year for silver buyers.
Volatility in the silver market is not a new thing: in direct connection with the price of gold, silver prices follow the same trend but sway more widely in comparison. This may be of interest to speculating traders and short term profiteers, but has a devastating effect on the average investor’s psychology – and constitutes a serious threat to the credibility of the metal as a long term investment tool.
Silver market analysis
The price of silver was scrutinized in 2013, but for all the wrong reasons. As this inherent volatility gave step to irrational rumours, analysts predictions that lead many investors to abandon the market entirely. After wobbling in December, there was enthusiastic visions of silver doubling its price and rocketing above $40 and $50 per ounce.
The worst of it was that both sides sounded convincing, and they were right, up to a point:
- Silver really did sell for $10 an ounce in 2005 (and again in 2008), and it is true that you could stack it up for $5 an ounce once upon a time, but the number of investors in the market is 10 to 100 times of what it was in previous decades and the vast majority have acquired their silver at prices well over $15 per troy ounce so it is highly unlikely that silver will ever see such prices. One thing is certain though: if it does it will be the end of it as an investment option.
- Spot silver prices seem to be on safe ground despite the continuing volatility, and there is a lot of space for them to move upwards. In the recent past there have been many who paid more than $ 45 for an ounce of silver, and odds are that we are far more likely to have to pay $ 50 per ounce than be able to buy one for $ 10 or even $ 15 at any time in the foreseeable future.
Prospect comes with stability in silver prices
As an alternative to a gold investment and as a means of diversifying your portfolio, silver is an excellent choice. Its fundamentals remain solid and technical analysis shows that strong resistance points have formed well above the $20 per troy ounce mark.
Although we do have to keep alert, it is now safe to start positioning ourselves in the market and coininvestdirect.com offers a wide selection of silver bullion products for you to make that choice.