Top 3 Recaps Silver Investment 2013

2013 has came to the end. Silver price has not been particularly exciting this year. Here are the top 3 events worth noticing:

1. April Price Drop

On 12th April 2013, silver price broke support at $26. $26 has been a strong support in the past. When silver price broke a strong support, the support will then become a strong resistance in the future. During this drop, some investor got panic because a strong support is broken. Most investors took this opportunity to buy silver at a discounted price.

support

2. American Silver Eagle coin sales created new record high

American Silver Eagle (ASE) coin sales is a good indicator to gauge investment demand for physical silver. The coin has a beautiful design yet the premium is relatively low among the other coins. That made ASE became a highly demanded silver coin in the world.

In 2013,  American Silver Eagle coin sales has created all time high sales record. Despite bearish silver price movement in 2013, physical demand for American Silver Eagle coin remained strong.

coin

3. 2014 silver price outlook

Technically, silver market is not over by looking at the major uptrend lines. The fundamentals continue to build in a favorable way for silver. The facts remain that gold is moving to China and India at rapid rate, Germany only received a fraction of their gold back. It will take another six years before the New York Federal Reserve will finish their delivery.

2014 will be a rebuilding year for silver to regain strength but not significantly. This is due to the ongoing currency debasement and the coming economic crisis. It is usually wise to buy when the markets are quiet and when investors are pessimistic.

Silver price is expected to be traded between $19 to $26. It might take several attempts to to break $26 before hitting $30 mark. However, it is always possible that something could take place to shift market sentiment overnight.

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3 thoughts on “Top 3 Recaps Silver Investment 2013

  1. Dear Danial,
    I was following the silver and gold price trend for about three months. Looking at the chart and comparing silver and gold it look likes gold is more aggressive. It tends to fluctuate a few dollar at times. Where as silver have a very minimum price change.

    I think the price might go lower may be it will try to break the RM19 support level before March 2014. During this period I believe is the most important period for gold and silver due to the tapering effect.

    Anyway, Lets follow the trend and buy on opportunity. Best of 2014

    • The reason to buy gold and silver is to protect ourselves against inflation by storing our wealth in forms of metals. It is also a great hedging tools whereby we can multiply our wealth exponentially, if the trend permits. Currently it is likely USD20/oz is the production cost for silver. And China is buying gold and silver like crazy. Like they know what storm is coming. There is no way to predict most bottom of price in free market. If we are buying at 20% low, say rock bottom price is USD16/oz, USD20 is still a good deal. Of course we try to buy at low to get the most oz out of our fiat. Buying gold and silver in Malaysia we will have to factor in currency exchange which fluctuate every minutes. Thus, knowing the trend of currency and metal can help to get you the most oz.

  2. Pingback: Silver Had A Terrible Year 2013 | Silver in MalaysiaSilver in Malaysia

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