As the novel coronavirus continues to trigger financial uncertainty, traders and investors need to be aware of the circumstances. Precious metals are usually a solid investment option, but it would appear that the silver market isn’t looking too strong as of right now.
The Current Silver Price Momentum
It has not been an easy week for the financial markets. Stocks continue to plummet on a global scale and at an alarming rate. The price of oil is also drifting lower. Topping it all off is how both gold and silver are receiving some push back after very solid momentum in recent months.
Finding a safe-haven asset can be very tricky. When markets are this volatile, it is almost like trying to catch a falling knife. Some may catch a lucky break, whereas others will lose a few digits. Now is not the time to take unnecessary risks,, especially when trying to enter new positions across different markets.
Traders and investors who have silver in their portfolio need to exert patience. While the prices are facing some pushback, they should respond strongly once the markets calm down a bit. Precious metals are always safe havens for financial wealth, but that doesn’t mean they can’t face some steep volatility of their own.
Should you buy Silver now?
Based on the current silver price, it looks like a very appealing point of entry. It is the first time since early August of 2019 that silver can be bought at roughly $16 per ounce. There is a chance that the price may continue to drift lower in the coming days, however.
Technical indicators seem to indicate that the markets aren’t settling down just yet. With the price still in a free fall of sorts, touching $15.6 is not out of the question. That would certainly be a good point of entry for newcomers. Scooping up some silver at that point can turn out to be lucrative, at least if one maintains a long-term strategy. Short-term gains are no part of the equation for most markets right now.
What About the Gold Price?
Users of the Vaultoro platform may be inclined to convert some of their crypto assets into gold. The world’s leading precious metal market seems less prone to these steep price declines. Although the price has dropped by nearly $90 in recent days, there is no widespread panic as of yet.
Looking at the same technicals, it seems likely to assume a further decline is near. However, there should be some solid support near $1,595. If that level is tested, there may be some further volatility down to $1,580.
Should this market fall apart completely – which is possible due to the novel coronavirus pandemic, the next support will be found near $1,525.26. Those who are risk averse may want to place their buy orders as low as possible. That also means potentially missing out on buy orders being filled, however.