Precious Metals Prices Are Melting In 2022

Pun intended here. Precious metals prices have slipped to a 2 year low. Does that spell opportunity?

precious metals prices are melting

Charts and indicators have given mixed signals. With gold and silver both a levels not seen since 2020, some investors are scratching their heads.

Others are scooping up precious metals at bargain prices. Silver, with a spot price over $26 per ounce just a few months ago has slipped under $18. Going into Friday’s market, the spot price has nudged slightly higher back over $18.

Gold is fairing the same putting the precious metal currently at $1710 per ounce.

As with any commodity and investment, speculations are plentiful predicting further slippage and rebounds. Both precious metals are said to be affected by expected increased interest rates and a strong U.S. dollar. Precious metals, often seen as a hedge against inflation, are being hurt by interest rates and a still strong dollar and rising global bond rates.

What does that mean for the stacker and individual investor? The Fed continues to push on higher interest rates. The newspapers are filled with recession predictions. And the future is unknown.

Is Now The Right Time To Invest In Precious Metals?

Buy low. Sell high. It’s astonishing to think that silver traded around $50 per ounce 1980 and 2011. And the current spot is a little over 1/3rd of that price.

Interesting enough, silver has also traded as low as $11.77 in 2020. We certainly didn’t bounce back to $50 as was suggested by some articles during the pandemic.

The right time to invest in precious metals depends on your goals. Investors looking to capitalize on upswings in the market are eyeing the current prices carefully. Buying silver today that could swing back to $26 in a year or less makes for a handsome profit.

On the other side, stackers who buy silver and other precious metals are accumulating over time. They often don’t have great resources to buy large quantities. Obviously no one wants to lose money on an investment. But buying a few rounds per month over time will even out the purchase cost.

Ideally, even if you are stacking slowly, saving some cash for a dip can help you accumulate more precious metals when opportunities come along.

No One Knows Next Years Precious Metals Spot Prices

There are professionals who assess the market for a living. They have access to greater data and tools that can help predict markets. Institutions that invest in precious metals look for dips and valleys just like you should.

Whether the market goes up or down from here, precious metals and investing gurus are going to say, “I told you so.” And only some of them are going to be right!

Currently prices look good. And better than when we though they looked good when they were 10% higher a few weeks ago.

Here are US Silver and Gold it’s hard not recommending buying precious metals. That’s of course what we do every day. We can’t predict the future, but buying the 2 year low makes a lot of sense.

Precious metals have generally appreciated over time – time being the last few thousand years. Silver, in 1980 and 2011, was driven be a scarce market. The great thing about precious metals is they have a common use in modern manufacturing and demand will likely remain in place for years to come.

It’s easy to see investors bullish on both short and long term investing right now. While it’s possible the spot for silver could drop back to $11, we see indicators showing strong support in the $16 range. We also saw investors buying precious metals in recent weeks, potentially seeing lows and expecting a rebound. We see this as potentially good news and remain optimistic.

If you’re watching the market or in the market, contact us for current pricing!

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