Silver volatility pushes investors to be steadfast and watchful
Should investors move on from this safe haven metal?
Silver, like gold, has always been regarded as a safe haven for the money of investors during volatile times. But the precious metal’s four-week low has made it volatile, making shareholders rethink their strategy if they should continue to stick with it.
Kitco advises that while the fluctuation will remain for the foreseeable future, those who had stayed by silver should not lose courage but be steadfast. The market will turn eventually and reward their faith and patience. On the other hand, in order to reduce risks, investors should also watch the movement of silver especially if it should hit a certain level or mark.
Silver first started its decline this year when it hit what seems to be its bottom in July with a value of $15.2450 per ounce. A few days ago, it closed at $16.89 an ounce or another reduction in value of its value last week by at least 1.5 percent.
In a separate report, The Market Realist also shows that both silver and gold performed poorly in comparison to the world’s overall stocks the past week. The value of the European stock market increased. One surprise was the improvement of Lisbon’s credit rating which had been taking a beating until fairly recently; this development has since helped boost Portugal’s flagging market.
One research analyst in Seeking Alpha, Caiman Valores, has been sounding the alarm, saying that silver’s inability to reach a trading value of $20 per ounce the past months is almost akin to the end of the precious metal’s world. He points out that the value of silver fell by 34 percent last year, and though it has rebounded in the following months, its value has decreased by 28 percent compared to 2013.
He cites the various reasons behind silver’s fluctuation and even posts a conspiracy theory saying it is being manipulated. Some of the factors he credit for silver’s underperformance are the following: an overwhelming outflow of paper silver that can upset the market; formidable financial institutions like Deutsche Bank , HSBC Bank, and the Bank of Nova Scotia controlling the free market as far as silver is concerned; and the latter’s creation of stringent guidelines to keep the rise of the precious metal in check.
Regardless of the reasons of its recent fluctuation, some still believe that silver will redeem its value and not lay forever at the bottom of the pile. Kitco looks back at silver’s performance the past decades where it did rebound but previous lows. At the same time, it cautions investors to keep on observing to see that it hits ‘the critical line’ of $16.80 per ounce and stay there. That is its current safety valve, making everyone breathe easier should it be reached.
If for some reason, silver fails to, the experts might have to go back to the drawing board for another solution.
Consolidation of the Fintech Sector Reinforces Mastercard’s Commitment to the Sector
Mauricio Schwartzmann, CEO of Mastercard Mexico, stressed that the firm's involvement with financial technology is long-term and goes hand in...
Canal de Isabel II Accelerates Towards Energy Self-Consumption
Canal de Isabel II will switch from the then state-of-the-art Pelton turbines of 1913 to producing green hydrogen from reclaimed...
Dogecoin: Doge Whales Return Due to Bullish Metrics
In the short term, Dogecoin is encountering its first major resistance at $0.075, although a larger obstacle lies at $0.08....
Exit for Kippy, which Had Closed Two Equity Crowdfunding Rounds
Kippy recently participated in the third batch of the A-Road acceleration and fundraising program which, through ongoing training and mentorship...
Laminar Pharma Opens a €5 Million Round through Capital Cell
Looking ahead to 2024, the group plans to reach break-even, when the European Medicines Agency approves its drug against glioblastoma,...
Featured1 week ago
Invitalia’s Funding for Sustainable Projects
Crowdfunding2 weeks ago
Yeldo Crowd Closes its First Campaign with €2.5 Million Raised
Featured3 days ago
Debt Ceiling Wars Again: Will the US Fall into Recession
Biotech1 week ago
Mikrobiomik Seeks Up to €3 Million in One Financing Round
You must be logged in to post a comment Login