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Given the Course of the Silver Price, Is It Time to Give Up?
The chart below doesn’t cheat or mislead you. At about $15.40 per ounce, the silver price is at its lowest since April 2016.
Is it time to give up on silver altogether?
Chart courtesy of StockCharts.com
The short answer may surprise novice precious metal traders: absolutely not. If investors realize that the longer-term conditions for silver prices are auspicious—as I argue here—then the silver price could move toward the $17.00-per-ounce mark before the end of 2018.
Experienced resource investors remember that in 2009, the silver price was even lower than it is now, only to reach over $41.00 per ounce in August 2011.
Even more than gold, the demand for silver exists beyond the precious metal and speculative markets.
Silver has significant industrial applications, for which the current supply won’t be sufficient.
The Silver Price Is an Opportunity
Thus, consider the current silver price an opportunity to get into what may well be the most interesting precious metals prospect around now.
For the time being, silver investors must be patient. Whether for valid or invalid reasons, stocks in the U.S. have been riding an almost 10-year bull market—the longest ever.
This, combined with the expectation of higher interest rates and inflation, has propped up the U.S. dollar. It’s hard for the silver price to recover under such mighty forces.
Still, the long-term prospects for the silver price amid trade wars and actual wars (Iran could well be the Pentagon’s next target) are excellent.
Even if the traditional haven investment incentive should fail, count on more concrete market forces to support it.
Silver, in relative terms, could even outpace gold when the time comes for the precious metal to go back in vogue.
That may take some time, but given the gold price as an indicator, the bottom may be approaching.
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