With silver prices remaining at historic lows, many analysts continue to predict that the current price action will reverse and silver price may head upward again. There are a number of reasons why this may occur and silver buyers can expect some good news as soon as the trend reverses itself and silver prices move in a positive direction.
While the silver price is trending downward, the silver price chart shows that there is an overall downward trend that shows a variety of price action with the first break taking place about a month ago in the third quarter of 2012. During that time, the price showed a decline of 40% or more in the four main market areas of London, Tokyo, New York and Hong Kong. In addition, this occurred after the global financial crisis and a prolonged period of economic uncertainty and turmoil in Europe, America, Asia, and Africa.
The silver price continued to move down after that point but began to turn around after the end of the fourth quarter. The silver price continued to drop slightly during the second half of the third quarter and the trend turned upward again. As the fourth quarter started, the price continued to rise and the upward trend continued in the second half of the fourth quarter. This has been a steady upward trend and the silver price continues to be trending upward as a result.
There are some important reasons for the silver price to continue its upward trend. In addition to the above mentioned developments, the global economy has picked up pace and there has been more growth in the U.S. dollar versus the Euro. This has made the dollar more attractive to investors and traders who desire safe haven investments. As long as the silver price continues to fall on an upward trend, investors and traders will continue to purchase silver and it will remain in a bullish position for some time.
Another reason for the silver price to continue on an upward trend is the fact that the price is following a major turning point that signals the beginning of a major reversal trend. Many experts and analysts have been predicting this for a long time now and it looks to be one of the major turning points in the history of the silver price. In addition, the silver price is moving up along with the U.S. dollar and the world’s largest gold producer is now producing enough silver to meet all of the world’s demand.
The silver price is now showing upward trend momentum and this may be one of the most important turning points in silver prices since the 1980 and it is an encouraging sign for silver buyers looking for a reversal in the silver price.
Silver buyers should take advantage of this reversal by entering a silver price target position and waiting until the trend reverses itself before buying silver again in an attempt to capture a profit. If the price reverses, the best thing to do is purchase more silver and wait for another opportunity. As an investor, you can expect that the U.S. dollar will remain strong in the near future and so will the silver price.
As we enter the final quarter of this year and look ahead to the start of the New Year, the silver price is expected to continue to move up as long as the global economy remains strong and the world economy continues to recover. This gives silver buyers a great opportunity to purchase silver and gain even greater wealth.