Not to be negative, but it’s a not-so-hidden secret that the economy has been struggling for the past half-decade—both on a national and local level. We all know someone who has lost a job and we’ve all had to rethink our own lifestyle choices from time to time. But on the flip side, it’s made us appreciate what we have, and all the little things that makeup this patchwork quilt called life, even more.
So when silver prices dropped sharply during the month of May (from a peak of $50 to a low of $33), we’re not going to lie: We inhaled sharply at first. But after thinking over the price drop, which affected all manner of commodities, including gold, oil and the dollar itself, we breathed out, calmly, again.
Why that moment of zen, you ask, especially when we deal heavily in silver? Well, according to The New York Times, there was unease over all manner of commodities to begin with, precipitated by unease over a potential slowdown in economic growth around the world. Then add to that the fact that the price of silver had risen 149 percent since September 2010—an astonishing amount of growth over a very short period of time. Analysts warned that this growth would not last, that it was unbalanced; it seems that now things are returning to what is considered normal pricing (not dissimilarly to the way the real estate bubble burst a few years ago).
Still, the unexpected drop in price—and the free-for-all that ensued, with prices rollercoastering up and down—understandably made a lot of other silver buyers and sellers nervous. They wondered if they should sell, if they should invest, if the market was going to rebound, if prices would dip lower. But experts say we should see the silver market begin to right itself, and get back to a healthy and as-stable-as-possible price, by mid-June—in other words, right now.
So what do you do, then?
We say it’s business as usual. Don’t be afraid to buy; don’t be afraid to sell. Sure, you should be cautious and consider your investments carefully—but you should always do that, no matter what. And don’t be afraid to contact us if you have questions, need an appraisal, or just want to talk about the market itself. We’re here to help however we can.
