Best time to buy silver

When is the best time to buy silver?

On hindsight, the best time was when silver was at all time low of $4 per Troy ounce.

That was way back in the 80s.

Most of us were probably too young to know about investment then.

Let us talk about the current year, and the future.

The volatility of silver means that there are many good time to invest in silver.

When silver reached a year high of almost $50 a few months ago, a change in margin requirement sent the price crashing down to $30.

That was the best time to buy silver for that month.

The low price did not stay low for a long time.

It went up again, and crashed a second time due to changes in margin requirement again.  If you had bought at the low price, and sold when silver was more than $40, you would have made a profit.

Many investors did not sell due to panic selling.

They sold because they have no money to hold the position.  They knew that they were selling at a loss, yet they had no choice.

That presents the best time to buy silver for those with cash on hand.

The current silver spot rate is $34 per Troy ounce.

Is it a good time to buy silver?

Yes, it is a good time.  It may not be the best time, but it is a good time.

Why?  The accumulated average price for silver in 2011 is $35.74.  That means the current price is below the average for this year.

That is why it is a good time.

You can comfort yourself when you think of those who bought at the peak of $50, and sold at the low of $30.

Knowing the best time to buy silver is one thing.  Knowing the best time to sell silver is another thing.

If you are buying paper asset, you can gain from the volatility of silver.

If you are buying physical silver, you may have to wait longer.  Make sure you have at least 20% profit before selling.

Silver price will definitely go up, at least for the foreseeable future.  US economy is not going to recover in a few months' time.

Buying silver is a hedge in times of uncertainty.