The markets are in the dumps… there’s no denying that fact. Unfortunately, since the first day of trading this year, we’ve seen declines. In fact, we’ve gone past correction territory, and if this continues, we will be hearing about the market crash of 2016 for years to come. So, how do you keep your money safe during times like this? Well, you look toward safe havens! One of my favorites at the moment is Silver. Today, we’ll talk about why we’re seeing what we’re seeing in the market and why silver is such a strong option for keeping your money safe. So, let’s get right to it…
Why The Market Is Having Such A Rough Time
While we’re seeing declines in the United States market, it’s not the only market that’s struggling. In fact, we’re seeing widespread declines worldwide. Any time there is a worldwide market decline, there are several reasons for the movement. This downtrend is no different. Here’s what’s causing it…
- Oil – First and foremost, oil is a major concern. The commodity has been at crisis levels for quite some time, and it seems as though the crisis is only getting worse. The reality is that the world is producing far more oil than it’s using, and as the law of supply and demand tells us, the value of the commodity must fall. Because oil plays such a major role in the energy sector, this is creating heavy resistance on energy stocks.
- Global Economic Conditions – When the economy is performing poorly, consumers look to save money. When consumers aren’t spending, the market struggles as companies report less than expected with regard to earnings and revenue. Unfortunately, the global economic picture is a very grim one at the moment. Some of the world’s largest economies, including China, Europe, Japan, and more, are all on the brink of disaster.
- High Valuations – We all know the term “what goes up must come down.” This term rings true in the market as well. As a result of the years long bull market, valuations in the market simply aren’t appealing. Combined with other issues, this is causing further resistance and helping to drive prices down further.
While I would like to say that we’re nearing the end of the market declines, I simply don’t believe that this is the case. In fact, considering the reasons for the decline and how widespread it is, I’m expecting for the bear market to continue for several months at the least.
Why Silver Is A Great Way To Keep Your Money Safe
Silver, like most other commodities, is at the mercy of supply and demand. One major factor that’s making silver so appealing is a massive increase in demand. On the first day of sales of 1 ounce silver bullion, the US mint sold about half of the amount they sold in the entire month of January last year. Not to mention demand for silver jewelry is climbing in the United States as it’s a cheap, yet quality alternative to gold, white gold and platinum.
Aside from consumer demand, investor demand is likely to spike. After all, when market conditions are poor investors look for ways to keep their money safe, and silver is a well known safe haven. So naturally, we can expect to see investors flocking to the precious metal. All in all, silver is trading at a low cost at the moment and realizing high demand, which means that now is a great time to get in on growth from the commodity.
What Do You Think?
Do you think Silver is a good investment at the moment? Let us know your opinion in the comments below!