The gold market like all other markets is seasonal. The Northern hemisphere experiences summer, that’s the time when gold is traditionally known to be slower. The current marginal trade of gold has been largely affected by the U.S Fed’s quantitative tightening plans. According to the World Gold Council (WGC), before 2000 the best performing month for gold used to be September but for the past 2 decades, August has been the best performing month for the precious metal. While gold is usually a good asset to invest in over the long haul, it is important to consider shifting macroeconomics to find opportunities in other precious metals like silver. Investors looking at gold might want to look at silver as these two metals. Why you should consider silver?
Over the last couple of week gold has shown little movements, Bitcoin soared and silver had its moment. Investors turn to silver because it is liquid and has been predicted to be on the way up because of the growing industrial demand and its liquidity. Whilst analysts predict doom and gloom in the markets in the near future investors continue to buy silver. Its low price relative to other well-known classes has been a key reason why so many people have turned to this particular precious metal. With a strong demand and a diminishing supply of the silver has been fundamental in why silver is the smart pick in today’s market.
There have been a definite paradigm shift in the markets. We have gone through the worst pandemic in the last century. Now we for the first time on over 75 years a European country has been invaded by one of the world’s most powerful country which also happens to supply the world’s the biggest amount of gas and oil. We are also in the throes of the worst inflation in over 40 years. When you look at all that has been happening in the world, pandemic, wars, inflation, hyperinflation, etc. signals a definite paradigm shift. There is a great imbalance in the world.
Inflation and repression following so close to each other show the end of one era and the beginning of another. What the future holds is unclear and it is this lack of clarity that will keep safe-haven assets like silver and gold popular. The market has been vulnerable for some time. Savvy investors and fund managers are preparing themselves for the next black swan event. Combining everything that has taken place in the last decade, one can see how vulnerable the markets have been as the greatest credit bubble in human history, but those who want to safeguard their future will be able to do this if they buy silver. With the U.S Federal Reserve taking a strong stance against interest rates, cracks will begin to show in the foundation of the credit market increasing the prospect of black swan evens like 1997Assian Financial crisis, the 2000 dot-com crash, the 2008 global financial crisis, Brexit and recently, the COVID-19 pandemic and then the Russian invasion of Ukraine. If you have some money to invest, there is never a perfect time. These calamities can happen at any time and without warning. It‘s better to be safe than sorry and at the current spot price, silver is an easy investment asset to buy.