What are the specifics of investing in precious metals? In what cases will it be beneficial, and in which not? These and other similar questions interest many of our compatriots. In particular, the current dynamics of silver prices and the prospects for its future course. Let's try to weigh the pros and cons regarding investing in this metal.
What do the experts say?
Analysts warn that the dynamics of rising silver prices are associated with a high level of risk, since the price volatility of this metal is very high. It should be noted that the supply volume of this metal, in comparison with traditional gold, is several times smaller, and the average spread of value varies in the range of 25-35% (for gold it does not exceed 5%). Investing in silver is a risky undertaking. However, where there is great volatility, you can not only lose, but also make decent money. A large number of banks work with silver, it costs much cheaper than gold, and if you track its rate and take into account the specifics of its behavior in relation to the dynamics of major currencies, then investment in this metal will become a rather profitable investment.
Silver prices: 2013 dynamics
Let's start with the facts. If you look at the graph of this metal in the current year, then at first glance it may seem disappointing. Since the end of January, when the maximum price several times exceeded the mark of $ 32 per ounce, the dynamics of silver prices until the end of June this year was directed down. June 23, the cost of this metal fell to $ 18.18 per ounce. After reaching this minimum, the dynamics of silver prices headed north. This trend did not last long, starting from September 19 (having strayed from the $ 23.44 mark), the cost of the metal began to decline again. And on December 4, the price of silver fell to $ 18.89 per ounce, after which it went up again. How long? It all depends on how the world industry will develop in the coming years, as well as stability in the foreign exchange market.
Prospects
In late November, UBS analysts worsened their forecast for gold and silver. In their opinion, in the foreseeable future, there are no catalysts for the growth of these precious metals. Experts believe that in December this year, the price of silver will fluctuate around $ 19 per ounce, and in the next three months to sink to the mark of $ 16 per ounce. Does this mean that investing in silver is now unprofitable? The answer depends on how long it is planned to make investments. Note that, starting from the 19th century, silver is quite actively used in industry, which seriously affects the level of its reserves in nature. Just 113 years ago, they were 12 billion ounces. In 2007, their level dropped to 300 million, and if the current rate of consumption of this metal remains unchanged, by 2020 all silver reserves could finally dry up. That is why in the next decade, the dynamics of silver prices may show a sharp increase. Thus, with a long-term investment, investing in this precious metal will be profitable, but it is worth waiting a few months to make sure that the downward trend has come to an end and regained positive momentum.