Silver Prices have taken a tumble of late, but historic trends suggest precious metals are about to turn on their head and become a highly profitable trade.
Spot prices for the white metal have fallen below $20 and expectations have been lowered to $20.50 per ounce in 2014, but for collectors and long term investors, this is a great opportunity to add a reasonable quantity of silver bullion to your investment portfolio.
The emerging economy has reduced tail risks and traders are more upbeat about investing in currency and other assets. As the economy gets stronger central banks will take more risks rather than playing safe with precious metals.
Silver prices closely follow gold, a commodity which is often used to hedge against tail risks. During the economic crises gold prices enjoyed a bull market because the ownership of gold between the world banks was high, but investors are now transferring their money where they can get better returns in the short term.
Silver ready to enter a bull market**
Gold and silver prices have to fall before they enter a bull market. Analysts are predicting falls of around 12 per cent before profitable trade opportunities arise and current forecasts suggest that will not be for over a year.
Silver prices are only expected to be around $21 going into 2015.
Precious metals need to continue the path of the bear market at the right combination of price before the bull trend can begin. According to one New York trader a “natural larger structure” is required before gold prices enjoy a boom.
It would appear banks will buy gold and silver in small quantities, but continuously over the next 18 months or so that when the prices improve they have sufficient reserves to sell and make a tidy profit.
Casual investors can take a lead from professional traders and by picking up on hints and techniques, the indicators are pointing towards investing in precious metals until the right time comes to sell.
Physical need for silver
When investing in silver always buy it in physical form rather than electronically or paper silver. European banks have been hit with a fraud from the Far East this year and many investors in precious metals lost their investment.
Silver is also a very sought after metal in numerous industries, especially technology where it is found in things such as hi-fi´s, portable handheld devices, and solar heating panels.
For long-term investors buying silver, the concern should be that silver resources are running out and in twenty years time it will no longer be possible to mine the white metal. This will force demand and prices high. If you do not have physical silver to sell you may lose your investment altogether.
For the latest prices on silver bullion coins visit coininvest.com and start adding silver to your investment portfolio today. The future promises healthy profits.