Should you Buy Silver, Given the Recent Fall in Price?

Silver price dipped in the past week before it rallied back to make up some of the lost ground. There is clearly some pressure on the price of silver and this has caused many investors to steer clear of this metal this week. While there is no doubt that the metal is not doing as well as it has in the past, this is definitely no reason to postpone your ‘buy silver’ decision now. There are still several factors that will shore up prices both for silver coins and wholesale silver.

The Never Ending Quantitative Easing Saga

One of the main factors that will help silver bullion regain its position is the quantitative easing announced by the Federal Reserve. Ben Bernanke’s official announcement of the $40 billion bank bailout every month is bound to keep the pressure on the dollar. No matter how many pleasant surprises the jobs data has in store for the future, the dollar will continue to stagger under the weight of QE4. Analysts are not very hopeful about the dollar coming into its own as long as the Fed intervention continues.

When currency is under pressure, precious metals thrive and this is bound to happen with silver as well. Investors are well advised to buy silver now before the government rethinks its QE policy and allows the economy and currency to find equilibrium naturally.

A Temporary Setback

Silver is showing signs of stagnating right about now. However market players believe that this may only be a temporary setback for this metal. In fact, many experts are making a ‘buy silver’ recommendation right now encouraging investors to add more silver coins or wholesale silver to their portfolio while prices are low. The fact is that silver is still in demand from the industrial segment no matter how its price moves and given its highly limited supply, the price of this metal is bound to go up in future.

No End in Sight for Federal Deficits

The Federal deficits are still very much a problem that do not seem to have any solution in sight. As long as this problem exists there is no question that the economy is going to remain under pressure. The Feds will continue to bring in different moves to address the issues at hand and these will interfere with the currency, keeping it from finding it equilibrium. Once more, this will keep dollar values subdued and boost prices of precious metals which are excellent stores of value.