Silver is, I believe, at an interesting point for a long term buying opportunity.
At the moment it is at its 8 year low, or in the last 8 years low price range.
I can't ignore the thought that silver seems really cheap at the moment. Since it's price is roughly the same as it was 8 years ago first thing that comes to mind is that silver is completely ignoring the inflation rate.
Silver is the only precious metal widely used for industrial purposes such as electronics (TVs, computers, smartphones), solar panels (although the tendency is to reduce amount of silver used for production of these), medical equipment. So, taking that into account demand is not really going anywhere in the near future.
On the other hand price is so low at the moment that I believe it can't go much lower, simply because it would make extraction and refining so unprofitable that companies mining silver would either go bankrupt or turn to other metals and such notion on a larger scale would cause a sharp drop in supply while demand staying the same, thus making the price naturally go up. So I think there is a critical price point below silver simply cannot go because of the nature of supply and demand and real world underlying factors. And, I think we are at the moment close to that critical price.
So general idea is that it seems silver simply cannot go down much further, and whether it will go up, how much and when remains to be seen. But I think going long now could definitely pay off in the coming months/years.
At the moment it is at its 8 year low, or in the last 8 years low price range.
I can't ignore the thought that silver seems really cheap at the moment. Since it's price is roughly the same as it was 8 years ago first thing that comes to mind is that silver is completely ignoring the inflation rate.
Silver is the only precious metal widely used for industrial purposes such as electronics (TVs, computers, smartphones), solar panels (although the tendency is to reduce amount of silver used for production of these), medical equipment. So, taking that into account demand is not really going anywhere in the near future.
On the other hand price is so low at the moment that I believe it can't go much lower, simply because it would make extraction and refining so unprofitable that companies mining silver would either go bankrupt or turn to other metals and such notion on a larger scale would cause a sharp drop in supply while demand staying the same, thus making the price naturally go up. So I think there is a critical price point below silver simply cannot go because of the nature of supply and demand and real world underlying factors. And, I think we are at the moment close to that critical price.
So general idea is that it seems silver simply cannot go down much further, and whether it will go up, how much and when remains to be seen. But I think going long now could definitely pay off in the coming months/years.