7 Important Timing Factors To Consider When Investing In Silver

When it comes to buying silver there are a number of important factors and considerations that should be examined and evaluated. These should always include:

Current Price Of Silver Per Ounce

1. The Strength Of The US Dollar- Precious metals and American currency have an unusual relationship, and when one of these is strong the other is weak. You need to know whether the US dollar is heading up or down, because this can help you make a prediction about which direction the desired vehicle is going to go in the near future. If you are not aware of these concerns then you could end up buying at the worst possible time and paying more as a result.

2. Current Market Volatility- The current volatility of the market is a big consideration. If there are cost increases and drops on a regular basis then it may be easier to time these movements and get in while the spot price is lower. Right now the changes that occur each day are numerous and this can mean more ideal opportunities as far as the perfect timing is concerned.

3. The Unemployment Rate- The unemployment rate and jobs numbers are both publicly available information that can be essential for your investing schedule. When there is high unemployment and fewer jobs are created this will make the precious metal sector more attractive to individuals, and this can cause an increase in value based on the higher demand.

4. The Political Climate And Associated Factors- Politics can play a very important role in all markets, and the recent fiscal cliff showdown proved this beyond speculation. When there was not a deal in place to prevent all of the automatic changes Wall Street saw large drops in price. Once a deal was struck then a rebound effect was seen instead, and everything headed higher. Know what the political climate is before you decide to invest in silver so that you are aware of all the relevant information.

5. The Consumer Price Index- This is also commonly called the CPI, and it reflects the cost changes that most households see for commonly used goods and services. This index is used as an inflation gauge and can be very important for the evaluation of any investment vehicle. Since precious metals tend to hold value and negate inflation changes they are attractive when the CPI and potential for inflation is high.

6. The Gross Domestic Product Numbers- The GDP is used to define the standard of living for a country, and it is a number that represents all of the goods and services that were manufactured in the country. Exports and imports are also included in the GDP calculation, and it can be used as a sign of economic health for investors who are trying to get the complete picture before parting with their capital.

7. Global Events- Every investor must be aware of global events that could cause silver and other precious metals to change in cost. These events can include conflicts and wars, worker shortages or strikes, and even natural disasters like hurricanes and typhoons. To get the lowest possible price of silver, it may be necessary to time the purchase with certain global situations, or to wait until specific events have passed.

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