Wednesday, July 11, 2012

Preparing for Silver's Season of the Running with the Bulls

Predictions are a long and funny joke running around the precious metals market these days.  A burning candle at the end of summer's play usually signifies a tide shifting in the economy.  Holiday spending brings a ramp up in manufacturing, an increase in jewelry sales, and a long borne ideal that precious metals "should" be heading higher in outworldly markets are all characteristic examples of after-summer market should be's.  Sadly, the last four years of silver activity has been anything but consistent.  High prices in 2010 didn't occur during the holidays, in fact, it was the beginning of the year through May, close to the end of the fiscal year for business.  In addition, it's been told that gold should be dropping to a closer ratio to silver by now or silver rising sharply to that same ratio, nope, not even close.  So what makes us think that our precious metals market should be running with the bulls at the end of the year?

Investing in silver, let alone precious metals, should be treated like preparing for a big natural disaster.  Buying insurance in the event something bad happens, but mostly never does, but there's the peace of mind.  Preparation and longevity are the keys to being a successful investor in this market.  Even if you buy now, I sure would pull the trigger with the low $27 spot prices of silver, you can ensure that you're locked into a historically positive performing investment.  It's better to have ownership of the paper or physical means than to not have it when the time arises that silver is shooting to the stratosphere.  In essence, making a move now will not look foolish, but an intelligent move to make sure you have a play in the metals market come October through the end of the year.

So when exactly is a good time to prepare for a bullish silver market?  Right now, when the market is cool and the summer breezes are warm.  Anything scrap with a purity of .999, .925 , .900 and even .800 are phenomenal choices.  They are a bargain close to melt than any "made for market" bullion that the world's mints sell.  Scrap or junk silver is so plentiful right now, most dealers are taking a loss to make the sale, often times selling with no premium whatsoever.  So if you have some free money sitting around for a silver investment, try going after some of these pieces before early September rolls around.  You won't get the bargain if you wait longer, let alone the opportunity to prepare of what could be a burgeoning silver season.

2 comments:

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