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Buy Silver Now?

Commodities / Gold and Silver 2013 Mar 29, 2013 - 01:32 PM GMT

By: Investmentscore.com

Commodities

Do you want to buy silver? Have you considered seasonal price patterns before jumping in with both feet? What typically has happened to the price of silver, in past years, following a March/April purchase? Does it make sense to buy now or wait to make that purchase?


2004 Silver Chart

In 2004 we can see that if we had made purchases of silver bullion in the first trading day of April, by September our investment would still be unprofitable. Additionally, multiple buying opportunities would still present themselves had we waited and not purchased in April. So what happened in the following years?

2005 Silver Chart

In 2005 our investment would not have suffered too badly but we would have had multiple buying opportunities had we been more patient.

2006 Silver Chart

2007 Silver Chart

2008 Silver Chart

2009 Silver Chart

2010 Silver Chart

2011 Silver Chart

2012 Silver Chart

The bottom line is that in every single year since 2004, there would have been equal or better buying opportunities in the price of Silver after the month of April. In some years, such as 2004, 2007, 2008 & 2012, the price of silver dropped significantly in the months following the month of April. Investors can be their own worst enemy when they focus on the short term and psych themselves out. In a bull market an investor can simply buy and hold for the long term, but this is easier said than done. If their purchase does not rise the moment they purchase it they can doubt themselves and sell low. Looking for lower risk opportunities to average into new positions can really help improve your portfolio's performance and help you stomach intermediate term price swings.

We think it is wise to look at the markets from many angles. At www.investmentscore.com we have proprietary indicators that help us gauge Short, Intermediate & Long term buying opportunities. We also consider seasonal patterns and wait for the lower risk opportunities to average into new positions. Our long term indicators suggest that we are in a bull market and the bottom line is that we want to make money from the big trend. Short term considerations can be important but even if an investor had bought on the worst day of 2003 they would still have an extremely profitable position today. Today's silver and gold markets are very interesting as prices are down, the current correction is getting to be long in the tooth yet the historical seasonal pattern suggests caution.

Buy now? From a long term perspective we think it makes a lot of sense to buy now. From a short to intermediate perspective things are less clear and it may make sense to be patient and buy cautiously.

Please visit our website www.investmentscore.com to sign up for our free newsletter and learn more about our paid subscription service.

By Michael Kilback
Investmentscore.com

Investmentscore.com is the home of the Investment Scoring & Timing Newsletter. Through our custom built, Scoring and Timing Charts , we offer a one of a kind perspective on the markets.

Our newsletter service was founded on revolutionary insight yet simple principles. Our contrarian views help us remain focused on locating undervalued assets based on major macro market moves. Instead of comparing a single market to a continuously moving currency, we directly compare multiple major markets to one another. We expect this direct market to market comparison will help us locate the beginning and end of major bull markets and thereby capitalize on the largest, most profitable trades. We pride ourselves on cutting through the "noise" of popular opinion, media hype, investing myths, standard over used analysis tools and other distractions and try to offer a unique, clear perspective for investing.

Disclaimer: No content provided as part of the Investment Score Inc. information constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers, including the staff of Investment Score Inc. or their affiliates will advise you personally concerning the nature, potential, value or suitability or any particular security, portfolio of securities, transaction, investment strategy or other matter.  Investment Score Inc. its officers, directors, employees, affiliates, suppliers, advertisers and agents may or may not own precious metals investments at any given time. To the extent any of the content published as part of the Investment Score Inc. information may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Investment Score Inc. does not claim any of the information provided is complete, absolute and/or exact.  Investment Score Inc. its officers, directors, employees, affiliates, suppliers, advertisers and agents are not qualified investment advisers.   It is recommended investors conduct their own due diligence on any investment including seeking professional advice from a certified investment adviser before entering into any transaction. The performance data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that such calculations are not guaranteed by these sources, the information providers, or any other person or entity, and may not be complete.   From time to time, reference may be made in our information materials to prior articles and opinions we have provided.   These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current.  As markets change continuously, previously provided information and data may not be current and should not be relied upon.

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