How Often Do Silver Prices Fluctuate?
Precious metal markets are open 23 hours a day. But these facilities aren’t immune to market changes during the one hour that they close down. Hence, if we assume that silver prices change every 30 seconds during the day, you’ll see a change in their value more than 28,000 times in a day. But this is the easy answer.
You can only understand the intricacies of silver price changes once you unwind the factors that influence the fluctuations.
How do the second-by-second fluctuations in silver rates affect the average investor?
Many factors including demand and supply, market fluctuations, and the direction of interest rates lead to a change in silver rates. While making bids and selling the rare metal, price adjustments are also made to silver leading to an illusory notion that these second-by-second changes matter.
Investment sentiment is one of the prime influencers in silver’s price fluctuations. Uncertain economic conditions, like elections and Brexit, can lead to significant daily fluctuations due to anxious investors flocking to buy precious metals as a ‘safe haven’ during economically tough times.
When all other forms of investment such as shares, stocks and real estate fall flat, gold and silver serve as a reliable hedge against inflation.
Is silver more volatile than gold?
The word on the street is that silver tends to be more volatile than gold. However, experienced investors hold that volatility isn’t a bad thing if you know how to use it to your advantage. When people are comfortable with buying silver at a pre-set price, they understand how to fuel their returns.
The demand for silver is more elastic than gold due to its industrial uses. But that also depends on market conditions. Hence, to boost your immunity to silver’s volatile nature, make sure that you never invest with your original capital. Instead, sell off the returns and see how the volatility averages out. This is another reason to believe that frequent fluctuations don’t really matter.
Should I constantly check silver price changes?
Other than increasing your anxiety, and wasting time and energy, monitoring silver price fluctuations every minute isn’t going to give you much. As a long-term investor, focus on your goals and keep track of silver price changes only occasionally. Besides, silver tends to offer an excellent return for your investment in the long run.
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