Falling Silver Prices: Is Now The Time to Buy?

Another dip in the precious metals market this week is making more noises of economic uncertainty, but for long-term investors in silver the drop is great news. With silver prices 30% lower than they were at the same time last year long term prospects look bullish.

Silver has witnessed something of a train wreck this year. It took a wobble in March, dipped in the summer and just as analysts sense the white metal might be making a strong comeback, politics whips the rug from under its feet and sends prices tumbling back down the stairs.

But silver does not stay down for long which is why investors should not be without precious metals as part of their investment portfolio. Buy now, and buy big. 

Providing you can weather the storm when the waves of inflation hit and the stock market rocks, silver is treasure as trustworthy as any precious metal.

Silver safe

Silver has been used as a safeguard investment for decades which is why the market is so volatile – and why short-term investors need nerves of steel. Long-term investors on the other hand can be assured their silver investment will profit them when the right time comes to sell.

Indeed, long-term investors are guaranteed silver prices will sky rocket in around twenty years time as silver supplies are dwindling. However, in advisable to stick to purchasing collectable coins rather than silver bullion. Why..?

Silver prices are affected greatly by demand and one of the biggest buyers is the electronics industry. Last year 7500 tons of silver was used to make electrical goods such as iPhones, tablets and TV´s etc.

Before silver supplies dry up the electronics industry will have to find another conducive metal for their products. Demand goes down and silver bullion prices are low. Coin collectors on the other hand will pay good money for old coins.

Don´t be fooled by silver prices

The headlines may not glance favourably at silver, but the reader shouldn´t get sucked in by talks of precious metals falling and diving. A lot has happened in the last two weeks to mess the chest.

The most significant factor is that the US dollar rallied under the threat of a Yen takeover and a rise in currency always sees a drop in gold – the short term hippos are hungry.

Silver prices are also taking a natural dip for this time of year following the Indian wedding season in which it is customary to present gold and silver as a dowry, gifts and jewellery. This year however, the Indian government restricted the amount of gold imports so the wedding couples had to settle for silver as an alternative to gold this year.

Regardless of how newspaper reporters make precious metal prices sound, silver will always have its highs and lows during the course of a year. As a long-term investor you have to ignore the financial ramblings and just put your faith in silver – she will come good for you when you are ready to sell.