Before You Invest In Silver, Here Are 4 Facts You Need To Know
Since the situation with the Game Stop stock, everybody wants to trade on the markets. Reports indicate that the Reddit team is planning to short on silver, but experts say it’s too risky.
There are things about silver that set it apart from ordinary stock. As a metal and a commodity, its value on the market is often overlooked.
If you think that’s false, then why aren’t traders going after gold? This is because gold is too expensive for the average trader. But silver is cheaper.
If you’re planning to invest or trade silver on the markets, you need to know these 4 facts.
Silver is an ancient commodity
Silver has been around for ages. It is a precious metal that is used for jewelry and ornaments. Today, silver is used across multiple manufacturing industries. As a metal, silver has unique properties. This makes it attractive for use in the automotive and electronics industry.
Why is this important? Because it’s a precious metal, there isn’t a lot of it. And if you want to follow in the footsteps of the Reddit traders and try to short squeeze silver, you might come up empty. Hedge funds and banks wouldn’t dare short against silver. Why should you?
The silver market is hard to manipulate
JP Morgan was fined 1 billion dollars for trying to manipulate the silver market. Guess what? He failed. Silver is too large a commodity to be manipulated. But if you were to try, you’d need a lot of money. The average retail trader doesn’t have that kind of money.
Silver prices rise when the global market prices fall
Silver has been recession-proof for decades. While other types of financial instruments can be influenced by the economy, silver stands strong. Additionally, many investors turn to silver when they predict that the economy might take a hit.
The amount of silver available is limited
While the silver market is vast, the amount available to retail traders is small. There are only a handful of silver owners, so they control the supply and demand. As stated before, silver is not easy to manipulate. Experts say that if retail traders aren’t careful, they might mess around and lose their shirts!
Overall, silver is profitable. But the only way to get the most out of the market is to understand its nuances. Diving in without proper education or strategy is akin to suicide.
If you’re serious about trading silver on the market, Global Bullion Suppliers can help. Along with years of experience in the market, they employ the services of tenured traders. These traders help them to stay informed and up to date with the market.