Why is the Silver Price Going Down

Why is the silver price going down? This has become the question of the hour for all silver investors. It seems as though it is in a downward spiral that never ends. The bright side, however, is that lower prices mean more buying power for silver investors.

We'll explore some of the reasoning behind the silver price going down and try to calm investors who have been scared away by falling prices.

Silver Awaits a Stock Market Dilemma

No matter what we see on the economic news every morning, it seems silver awaits a stock market dilemma. We have seen lousy job numbers, civil unrest around the world, various acts of terrorism, and an overall drop in value for various currencies.

why silver price downSilver however, seems to be stuck in a rut with gold for some reason.

Uncertainly that exists in the world today is a driving force behind precious metal prices. In a typical stock market, this would be good for overall metal prices especially gold and silver.

Unfortunately, this is not a typical market. This is the artificially inflated stock market pumped full of cash by the Federal Reserve.

Silver tends to follow gold in its price trend. It has become clear that the money printing of the federal reserve and its artificially inflated stock market have succeeded in holding down the price of silver and gold for now.

The only bright side is that we remain in a buyer's market with historically low precious metal prices. Even though it may not make total sense, a stock market dilemna seems as though it will reverse the silver price from going down any more.

is silver losing value
Is Silver Losing Value?

Silver Price Stagnation

With the economy in a somewhat dormant state, and the government in a daily battle of some major issue, we have continued to experience silver price stagnation. Stagnation can be defined as a state of inactivity.

silver price downSilver prices are not really inactive, they just don't seem to travel very far in either direction.

Silver spot price continues to hover in the low twenty dollar range. It has been essentially paralleling gold with its daily changes. For how long, and why, are questions that the experts can answer but never get right.

As economic uncertainty continues to build in the United States, silver bullion remains a good solid investment vehicle. I always encourage silver investing for retirement in the long term.

A ten to twenty year investment strategy is a safe bet. With silver price stagnating at the current level, bullion purchases are being made in coin shops around the country at discount prices, even with a decent premium attached.

It is hovering around production cost which is a level that cannot be maintained for very long. Silver miners won't work for free, so we are pretty much guaranteed an increase in pricing based on production expenses alone.

will silver price recover
Will The Silver Price Recover?

No matter the state of the economy, silver will most certainly increase over time based on mining and production costs alone. This is why I would always stress long term investing.

Have interest in long term investing? Read more... we've taken some time to explore retiring with silver.


See Also: Buying Silver Online | Silver Investing FAQ | Silver Investing 101 | Silver Showcase | Retiring with Silver | Silver in a 401K Retirement Plan | Coins, Rounds, or Bars | Get Rich with Silver | One Oz Silver Rounds | Where to Buy Silver Safely | Physical Silver VS Paper Investments

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