Is The Buyer’s Market For Silver Coming To An End?

Few markets are as depressed – and, as many analysts argue, suppressed – as silver. Prices for the white metal continue to languish in a low-level trading range amidst lackluster demand.

The upshot for investors is that they can now obtain silver bullion at both a low spot price and a low premium above spot.

How long this buyer’s market will is unknowable last. But given silver’s manic-depressive personality, prices could launch explosively higher at any time.

The silver market now sits enticingly close to a major upside breakout.

The weekly silver chart shows a potential double bottom forming at the September and November low points.

Prices will need to clear the $14.75 - $15.00/oz resistance zone before bulls can finally celebrate a rally of some significance. [Silver prices entered this zone on Wednesday.]

For the moment anyway, value investors can continue to take advantage of fantastic bargains in the silver bullion space.

Silver for Barter and Trade

One of the top attributes of silver is its versatility. It comes in a wide range of shapes and sizes, including some that are particularly well suited for barter and trade.

Silver is often overshadowed by its pricier counterpart, gold, when it comes to discussions of sound money. Yes, gold is more likely to be held in reserve as a monetary metal for backing a currency. But silver is more likely to be exchanged by individuals in actual, everyday transactions.

It isn’t practical to pay for a cup of coffee using a gold coin. Factional sized silver coins, however, can closely approximate the prices of just about anything on a coffee shop’s menu:

  • A 90% silver dime is worth just over a dollar in terms of its intrinsic metal content.
  • A silver quarter, about $2.85.
  • A silver half dollar, $5.70.
  • A half ounce pure silver round, $9.00.
  • And a one-ounce silver round, $16.60.

Pre-1965 90% silver coins may command additional historical/scarcity premiums above their melt value in the future. You can obtain them now at regular bullion prices, giving you a free “call option” on rising premiums.

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