Preparing for the Next Silver Bull Market

Preparing for the Next Silver Bull Market

October 10, 2018

Over the past two years, American stock markets have rallied to astonishing new heights. Precious metal values, meanwhile, have trended downward. Rising sociopolitical and economic uncertainty, however, will likely contribute to a considerable rise in the value of silver in the coming months.

The structure of the precious metal markets usually results in drastic reversals in value after extended periods of downward trends. While it’s true that the value of silver has been falling consistently since this spring, it’s likely to see a major reversal in the near future. Trade tensions will likely adversely affect the stock market, driving more investors to purchase precious metals and spurring a silver bull market.

If you’re thinking about investing in precious metals, here are few reasons you may want to buy silver in the near future:

  • Silver has value: An important thing to recognize about silver is that unlike fiat currencies, including the U.S. dollar, it has inherent value. While fiat currencies are only as strong as the central bank or government that backs them, silver has inherent value that can’t be eradicated. Silver isn’t susceptible to the same sociopolitical winds that can affect most assets.
  • Silver is a hard asset: Unlike paper currency, fiat coins and cryptocurrency, silver is a hard asset that you can keep on hand. Regardless of what happens in the world, you’ll still have access to your silver, and your silver will still have value. Even in the event of a catastrophe, silver will continue to be a valuable investment that you can depend on.
  • Silver is affordable: Compared with gold and some other precious metals, silver is strikingly affordable. Silver, on average, is worth just 1/70th of the value of gold, but it holds its value just as well. This makes silver more accessible for casual investors. Additionally, silver is more practical for everyday trading, and for use with daily purchases.
  • During bull markets, silver outperforms gold: While in most cases silver’s value against gold is relatively low, it’s important to look at historical trends and see the way that silver performs during precious metal bull markets. The value of silver is slightly more volatile than that of gold, meaning that it both appreciates and depreciates to greater degrees. In light of the forecasted bull market, now is the perfect time to begin investing in silver.
  • There’s an increase in industrial use: Silver is a well-known component in fine jewelry and a number of other household items. Did you know, however, that silver is also commonly used in industrial applications? Cell phones, batteries, self-heating windshields, solar panels and more all rely on silver for their production. This is reducing the amount of silver in circulation drastically.

Gold Wealth Financial is a full-service investment firm that advises clients on the best ways to buy silver. If you’re looking for sensible financial advice, and are hoping to begin investing in precious metals, contact one of our friendly representatives today to begin your precious metal investment journey.

- by Steve Hunt

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