About 10 days ago, silver prices registered a massive slump. Afterward they were locked in a tight range, allowing investors and traders to get advantage on the buying opportunity. Though, last Thursday the white metal followed gold’s progressive recovery. However, Friday brought losses to both precious metals. Now investors and traders are praying that the rally wasn’t a one-time phenomenon as prices continue to advance this week.
On Monday during Asian trading hours, silver futures for delivery in May rose by 1.9% to reach $24.22 per ounce.
Periods of consolidations and corrections are seen in all bull markets. The precious metals market is no exception. A lot has been said and written about the recent crash in gold’s market. Yet, white metal prospective hasn’t been put under proper consideration. Some analysts believe that at the present global conditions silver has a lot more to offer than gold. The silver market is relatively small, hence prices tend to be more volatile. Good evidence is the heavy sell off recorded over the last month. Yet, volatility has two sides. In respect, prices can easily boom when the white metals rises.
Analysts endlessly speculate about the solid slump which silver took in April. Yet, most of them leave behind one crucial importance of the physical silver market. It is a fact that both gold and silver prices fell sharply. However silver investors didn’t tend to go for a sell off. Actually they did the opposite. The clever investors threw their money into physical silver due to the lower price.
Meantime, ETF also did well during the first quarter of 2013. Global silver ETFs added 20 million ounces to their holding. In just three months about $600 million worth of silver has being bought. During that time, the white metal prices were progressively falling.
The end of the bullish silver market is not yet to come. The historical patterns form previous heavy sell offs should be considered seriously. In this respect, the white metal could easily advance some 25% in the near term.
