In the last commentary, I indicated that market uncertainty would be on the rise. Current market action is proving that to be true. The cross currents in the markets are now pretty intense. Improving domestic stats on economic recovery and the full force spin coming from the media and government officials that our economy is improving are conflicting with actual experience on main street, a potentially devastating economic event in the gulf with the oil spill and a sovereign debt crisis that is spreading in the EU zone.
This has caused wide volatility in the markets in nearly every sector, including precious metals. Silver has not escaped the volatility. This is typical for silver, particularly when short term concerns over economic/industrial demand and liquidity arise. Remember, silver is both an industrial metal and a monetary metal. When conditions arise where industrial demand becomes a concern, those same conditions increase the demand for silver to act as a monetary store of value. This produces the volatility we see in the silver market. Expect it.
Over the longer term, the fundamentals of silver will triumph. The volatility is a perfect reason for using Silver Saver’s dollar cost averaging to insulate you from these periods of volatility. Stay with your savings plan!
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