So I been looking at silver price and man, this thing really getting hammer down hard right now. Like really bad. Let me try explain what going on because it pretty confusing actually.
Silver Just Keep Falling And Falling
Okay so silver right now around $64 per ounce. That like… really weak number. In January this year, silver was at $122. You understand that? It was $122, now it $64. That mean silver down almost 50% from top price. Almost half the value just gone. That crazy.
And today it drop another 1% or so. It went below something call 200-day moving average. I not really understand all the technical stuff, but basically when price go below this line, the trader peoples think it mean price going to keep going down more. Like warning sign or something.
Last time silver this cheap was back in March. So basically from March till now, nothing really change – still just going down down down. People who buy silver thinking it going to make money, they probably very angry right now. That lot of money just disappear.
The Problem Is – It Supposed To Be Safe But It Not Safe
This the thing that weird – silver supposed to be safe investment. You know, when world get scary, people buy gold and silver because they think safe. But silver not feeling safe right now. It feel more like roller coaster. Go up crazy, then go down crazy. That not what safe investment supposed to do.
So why people stop buying silver? And why price keep falling? That good question.
Interest Rate Thing Is Problem
The main thing is interest rate. People thinking Federal Reserve going to raise interest rate. Like 70% chance they going to raise before December. That what trader thinking now.
When interest rate go up, why silver bad? Because silver not give you anything. It not give interest, no dividend, nothing. You just hold it and hope price go up. But if you can put money in bank account and get 5% or 6% interest instead, why you hold silver that give you nothing?
So when interest rate go up, silver look bad compare to other thing you can do with money. That why people selling.
And also dollar getting stronger. When dollar strong, silver become more expensive for people outside America. So less people want to buy. That make price go down more.
Gold Getting Hit Too
Silver not only one suffer. Gold also getting hit bad. Gold go down more than 1% today. It down to like $4,200 per ounce. That lowest in like 11 weeks or something. So both precious metal just… not doing good right now.
This ironic because gold and silver supposed to be hedge against inflation. Like, when price go up everywhere, you think gold and silver value stay same or go up. But what happen now is inflation make people think interest rate going to go up, and when interest rate go up, gold and silver go down because they not give you money like bank account do.
So the thing that supposed to protect you actually hurt you right now. That backwards.
Inflation Number Coming And That Big Deal
So tomorrow or later today or something, inflation number coming out. Consumer Price Index thing. That what they call CPI. Then Thursday, Producer Price Index coming.
These number really important because they going to tell Federal Reserve if they should raise interest rate or not. If inflation number high, then Fed probably going to raise rate more. And if Fed raise rate more, then silver and gold price probably go down more.
So basically everything pointing down right now for precious metal. Dollar strong, interest rate probably going up, and the only thing that could maybe help is if inflation number come in low. But people not expecting that to happen.
So Silver Investment Right Now?
I not financial advisor or nothing, but silver definitely not looking good. Down 48% from peak, keep going down, and everything pointing to more down coming.
For people who already own silver and buy it when it expensive at $122? They probably holding bag right now. They hope maybe price bounce back, but honestly looking like it get worse before it get better. That if it get better at all.
The metal that supposed to be safe haven now just feel like bad bet. That sum it up pretty much.