A big bump in silver’s value in 2016 has convinced many precious metal investors to buy silver and add it to their portfolio. However, due to its not-so-good reputation, investors wonder if it’s a good thing to invest in and how they can do that.

Few things can determine if a silver investment is profitable or not. These include when to buy and when and where to sell it. It may not be a simple endeavor. Evaluating trends in silver prices and their causes aid you in understanding how its cost cycle works.

This blog talks about how you can make profits from silver during uncertain market conditions.

Understand the Cycles

Just like gold, silver operates in cycles of booms and busts. There can be times when major silver sellers reduce prices, even with its high industrial demand and limited supply.

Then the prices can take a sharp turn and abruptly gain traction very quickly. Silver cycles frequently run, especially in the past several years. These trends in silver price follow that of gold’s but sometimes outpace them as well.

Don’t Stay for Too Long

There are a lot of psychological traps when it comes to investments. It often brings investors down. To master the silver cycle, one must understand that it won’t always generate profits. Silver prices increase slower than they drop.

Therefore, if you overstay in the silver market, you may face a difficult time selling silver during peak times and suffer a loss. To avoid that, we advise you to dedicate a percentage of your portfolio to silver and stick to it.

When prices increase due to uncertain market conditions, you will require less silver to fill that section of your portfolio. You can quickly sell excess and continue to gain profits.

Keep in Mind. Silver is Volatile!

Silver prices are notorious for their volatility, making it a precious metal that investors can monetize with. At the same, this also makes it a very risky metal to own. Its prices rise and fall very quickly when we compare it with gold.

Silver outpaces gold, as silver follows an upward trend with gold most of the time, but we never know when silver prices will fall. That’s why we advise people to invest in both these metals. Therefore, if you foresee a price drop in silver, you can easily trade it for gold and gain profits.

Never Sell When You’re in Panic

When compared to gain, people are more sensitive to losing. It’s called loss aversion and is a concept in behavioral psychology. Even if you’re making profits from your stocks, property, and god, you’d feel bad because of the minimal losses you experience.

When prices hit a low – going below the purchasing price – investors panic. They sell in panic, without waiting for the prices to bounce back. With a metal like silver, patience is the saving grace if you had missed the break-even point. Remember one thing,the profitability of silver is cyclical.

Know Where You’ll Sell

To make the most of your silver in uncertain times, know where you’ll sell it. You should have silver coins and bars that make up your silver holdings. Make sure that you sell this silver to silver dealers.

We advise against selling to coin shops, cash-for-silver businesses, and pawn shops. They won’t give you the fair value. Do your research. Sell wisely.

If you’re looking to purchase silver for investment, visit Orion Metal Exchange. We have a range of coins from Canadian Maple Leaf, American Eagle, and Canadian Mint Polar Bear. Our services include precious metal investing for IRA, secure vault, and home storage facilities.

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