April wasn’t a good month for silver, as prices sank below $20 per ounce and dropped to an eight-month low at $19.063 per ounce, challenging a very critical support level. May has started with high volatility, although it seems that this week silver prices may have another go at the $20 an ounce barrier.
Technical analysis is very difficult at this point, as support at $19.50 proved to be very weak, while resistances over that point are getting stronger. Although each new low is higher than previous ones, this is really no guarantee for a positive trend as volumes are very low at this point. In fact it is quite possible that it is mostly high demand for silver coins that sustains silver prices at these levels.
A great time for silver bullion buyers
The following weeks are bound to present some great buying opportunities for investors in silver bullion products, as the market’s volatility shows that small investors are nervous and rather disappointed by their silver investment, and are ready to dump their silver the first chance they get.
Sad as this maybe both for them and the near term course of the market, it is nevertheless a fact that any successful investment in precious metals needs patience, a clear head and knowledge: in one word it needs character.
By purchasing silver bullion, you are making a long-term, low-risk, rock solid investment which serves as a hedge against devaluation of paper money. Neither fear of losing your savings overnight, nor greed to double or triple your investment in one or two years should be in your thoughts. You should seek buying opportunities, acquire your silver bars or coins in smaller quantities but on a regular basis, and never sell for absolutely no reason.
Silver is much more approachable than gold to small private investors, and if you are one of them you must have heard or read the previous “directions” dozens of times, but since “Repetition is the mother of all Learning”, it is good to bring them into your mind whenever you are watching the news about the Ukraine crisis or the tapering of the QE.
This by no means implies that world economic events have no weight on silver markets as nothing could be further from the truth. However, we have to analyse, measure and assess our data, and above all evaluate sources for their reliability. With a lot of patience and a little effort we can find secure guidance for our decisions towards a better future.
Last but not least, casual investor must appreciate they are not traders that have the privilege of buying and selling silver they do not own or that does not even exist in its physical form; they pay no premium, they can buy and sell many times within a day’s session, and they can profit taking advantage of small price fluctuations.
All you have to do is use the services of a reputable on line dealer such as coininvest.com and buy silver bullion to secure your future.