Silver Takes Off
After doing research today about the gold market, I was surprised to see the big movement in silver. It seem that the entire character of the commodity has changed. It has gone from being in a sideways market to a strong, clear uptrend.
I think silver is a good investment because of the large amount of money being printed by many countries, especially the U.S. Besides that, it seems pretty clear that not just the U.S. but many of the world’s economies are on shaky ground. What do you think will happen to the price of silver if there is a major default?
What is driving the price of silver?
Unlike gold, silver is primarily consumed. Many people, countries and even ETF’s buy and hold gold. However, silver is a different story. Silver is mostly used in industrial processes in huge amounts. That means that the price could rise quickly because of demand of industry.
So what does this mean for you? Well, the first question I would ask myself is “How can I profit from this information?” If you trade stocks or have experience in trading commodities, you probably have a clear idea of a trade you would take. If you have never traded stock or commodities, then I would suggest learning more.
There is a nearly infinite amount of information available on the internet about trading. Or you could get a good book. Then I would suggest paper trading (which is being replaced with virtual trading). Only put real money at risk after you have a tested system.
The final important point is the one that is most ignored. If you think that any of the above makes sense, then do something! It is so easy for us to say, “I’ll do it tomorrow.” I think for 99% of us, tomorrow never comes. Well, tomorrow comes but we have long forgotten our desire to do anything about trading or investing. So, if you think you might want to take a small step to improve your financial future, then do it now!