When the price of silver per ounce was $50

When the price of silver per ounce was $50, you would have thought that nobody dare to buy.

However, the fact is that people were rushing to snap up silver at such high price.

The craze in the commodity market was alarming enough that CME kept on changing margin requirement.

CME Group is the owner of the future exchange NYMEX.

The changes in margin requirement means that the minimum trading requirement is $21,600.

If you have this much money, you have just met the minimum requirement to trade.

This is an increase of 84% in just two weeks.

The drastic action caught many small investors and speculators by surprise.

They never expected it.

They had to sell off their holdings.

The massive force sale forced the price of silver per ounce to drop from $50 to $33 in a matter of days.

The funny thing is that people all over the world, including those not involved in commodity trading, were willing to pay when the price of silver per ounce was $50.

They bought silver bars.  They bought silver coins. They invest in silver saving accounts with the banks.  They invest in silver Exchange Traded Fund.

What happen when the price of silver per ounce dropped to $33?

Since that is a deep discount, you would have thought that people were rushing to buy more.

The reality is that nobody dared to buy when the price of silver per ounce dropped to $33.

Why is that?

The only reason is the psychological makeup of most people.

When price is high, they fear that the escalating price will push the commodity out of their reach.  That is why they join the crowd to push the price even higher.

When price is low, they fear that the price will go lower, so they refuse to buy.

That is despite the fact that both fundamental and technical analysts sound the warning about the pending silver price correction!

The analysts and many experienced investors already warn that buying at $45 or even $50 is not wise.  If you want to buy when price is high, just buy a bit.

However, most people do not listen.

They not only use all their money, they use the bank’s money as well.

Will the price of silver per ounce go above $50?

Yes, it will.  It is just a matter of time.

If you have the patience to wait for a year or two, you can buy physical silver in the form of silver coins or silver bars, and wait for the price to go up.

When is the best time to buy?

Anytime is the best time to buy, provided you spread out your money.

Even if you bought a bar when the spot rate was $50, you could have bought another bar when the price of silver per ounce was $33.

That brings the average price of the silver bars to $41.50 per Troy ounce.