
It's quite amazing the way interest in silver investing has been increasing day by day. Silver has been the most volatile commodity in the commodities street in the last few months. What goes up has to come down by any way, trend is not always the same. After making a record high in prices, the price of silver crash last month, many gained and many lost in the ride.
Why you should invest in silver now?
The price of silver has already been corrected and trading at lower edge. With the rising demand, it is inevitable that there will be unprecedented demand array for the silver. With the high inflation concerns in Asian economies like India and China, sovereign debt risk in Europe, America's financial instability, Japan's crisis, etc. investors are quite bullish about the silver trend as it's an alternative investment.
This is a good time to go long (buy) for silver and sell the same when price goes up.
In an interview to India's ET Now, a business television channel, Global commodities investor and economic analyst Jim Rogers that he continues to be bullish on the silver.
“Well, I did buy some silver this week. But if they go down, I'll buy more. I don't want to go long on gold, it's at an all-time high. I'd prefer it to correct and go down and if it goes down and silver goes down, I'll be buying more," Rogers told the Economic Times, the newspaper.
Different strategies and various points to consider
You can always invest in silver but you ought to keep your eye on certain things while doing so. It's all about using the right strategies. The more better you play, more are the chances to win.
Below are some strategies or points you can consider while investing in silver:
(Also read: Why you should own some Silver?)
- Do follow news flowing in the market about the silver. Investors often go for silver as an investment at times of economic uncertainty and high inflation. They use silver as a bullion to hedge against such scenario in the form of alternative asset.
- Do follow a strategy to buy on dips and sell on rallies. In other words, if you are trading in commodities market using futures, go long when prices have been corrected and are trading at lows and go short (sell short) when prices are trading at highs. In such way, you can make a good amount of profit.
- There is a high correlation between the price of gold and silver. You should always observe the price changes of gold because both the precious metals often move in same direction. This also implies, if the price of gold is moving up, quite possible the price of silver also move up and vice-versa.
(Also read: How to invest in Silver?)
OneIndia Money
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