Why is Silver Selling Off?
By: John Fisher Why is Silver Selling Off? Last week, S&P downgraded US long-term debt from AAA to AA+, adding a negative outlook leading to further downgrades. Watch for the other principal grading agencies, Moody’s and Fitch, to potentially do the same in the future.
Gold has skyrocketed higher as many investors view the yellow metal as the safest place to be. Concurrently, the broad markets, including international markets, indiscriminately hit the “sell” button, with domestic markets off – approaching 15%.
So why has silver traded lower? Three reasons:
1) Gold has always been, and will always be the ultimate safe haven asset, not silver.
2) Gold has become the precious metal du jour, much like silver was just months ago.
3) Poor industrial data in the US and internationally has silver experiencing a difficult time deciding whether to act as a monetary or as an industrial metal. Right now, the latter is driving the bus.
All Things Considered – John’s Commentary
What all of this means is that now is exactly the right time to buy silver. Always buy what is out of favor, when everyone is enamored elsewhere.
I have been buying silver both last week as well as this week. I would strongly encourage you to do the same. Don’t wait or procrastinate, and don’t wait to see if it is going lower. These price levels are a buy.
