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BDSwiss | January 17, 2017

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Opportunities with silver - BDSwiss

Opportunities with silver
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It wasn’t all that long ago that silver was being traded as one of the top performers in 2016. However, since donlad trump has taken the helm in the US, silver has been on a steep price decline.

The background

The election in the US created a furore on the exchanges around the world. However, unlike what most analysts had predicted, the US economy continues to grow. The dollar is getting stronger and is is currently expected that the FED will increase its benchmark interest rate in Decmeber. All of these factors have caused the price of silver to crash in recent weeks. The price has fallen by almost 15% in the past three weeks.

Is recovery coming soon?silber-bdswiss-small

The question that many investors are now asking is whether or not this recent price deterioration is actually justified. There are some indicators which indicate that the price low point could be reached and that a recovery could be coming. Over the past 3 years, the demand for silver has exceeded supply. In fact last year this imbalance was 120 million ounces. This high demand is the reason that prices should actually increase. In addition, the growing unrest on the stockmarket coud drive up the price of silver. Even if the effects of Trumps economic policies are likely to stimulate rather than slow down the economy, the outcome is still unpredictable for many, and precious metals such as silver have always been a safe haven for investors in uncertain times.

Chances to take advantage with silver

With a steep price loss, investors can generally expect an equally strong recovery. Especially if the initial position was as good as it was with silver. There is currently no fundamental reason why the price has fallen by so much. As a result, short-term investments could provide opportunities for entry into the market. All in all investors should remain vigilant in order not to miss out on opportunities.

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