Silver, that distinctive white metal we most often encounter in the form of a piece of jewelry, decorated or not, alloyed or not. Silver has always been a highly prized precious metal by man, and this since time immemorial. What about its value? What is its current price?
The price of silver recorded a gain of 4.75%, for the first time in almost a month. This feat was achieved following the announcement of the report by the Federal Open Market Committee or FOMC.
Investors were greatly astonished by this coup since no one had anticipated such a development, especially after silver suffered the severe corrections of last month. As markets intended to reduce bond-buying plans for September, this resulted in a drop in the price per ounce to 18.20 dollars.
Should we expect a sudden drop or a sudden rise ?
More than once, the price of silver has fallen below the symbolic threshold of 20 dollars per ounce. It should be noted, however, that the price has, in some cases with difficulty, been able to climb back above that level. But one can never expect the curve’s movement to always happen this way. The global economic crisis and the drop in demand from industry could be fatal to this market.
Once again, expectations were contradicted and the price of silver returned to 20 dollars. Despite the recorded gain, silver is still very dependent on inflation or on the devaluation of American or European currencies.
Economic data help to bend the price. A week ago, the dollar strengthened against the euro. This situation led to an increase in the gold/silver ratio, which currently stands at 1280.
Investing in silver : always buy a physical financial product
If you want to invest in a safe and profitable asset, the ideal is that you bet on physical silver. It is easier to make this investment prosper compared with paper silver, of course. Paper assets are worth almost nothing at present, given the current economic situation.
Investing in physical silver is considered an alternative to all volatile investments, apart from the livret A of course. It should be noted that these two forms of investment are different, and not only in one way. Physical silver can be held as a tangible asset, since it is a raw material. As it becomes scarcer, its monetary value will increase at the moment when it can no longer be found on the markets.
Continue to invest and buy nonetheless
Yes, silver is being neglected in favour of l’or, but this should not be seen as an obstacle regarding investments. All the more so because, although it may seem quite incredible, know that silver is much rarer than gold. There was even a time when silver was considered the most valuable of goods.
The number of private investors continues to grow and the same is true for institutional investors. Logic dictates that when the number of investors is on the rise, the market does well, and therefore prices will inevitably increase.