RockOn wrote:Also, with the global economy teetering on the edge of a cliff right now, buying one of the most volatile assets in the world (no jokes!) is probably not the best idea. Silver can easily lose another 20%-30% before it turns around for good to start its new bull market. That's just my 2
Yes very good advice. People have to be careful when trying to determine what a "cheap" price is for an asset class.
Sure Silver seems cheap right now at 14$ compared to the nearly 50$ it was just a few years ago, but it's not so cheap compared to the 8$ it was 7 years ago, or the 4$ it was 13 years ago.
For anybody thinking of dipping a toe into the silver market, hopefully you have reasons for the investment beyond just saying 14$ is cheap compared to where it should be. Remember precious metals have far less industrial uses than we have supply, so at the end of the day, 4$ silver makes just as much sense from a supply and demand perspective as 14$ does, or 24$. It's not all based on fundamentals or supply and demand. It has several external, unquantifiable, quite arbitrary factors pushing it's price around that make it nearly impossible to gauge fair value for.
And I still think buying through the ETF SLV is the best bet. No liquidity and slippage issues, and you can sell options on your position to collect premiums