Is it time to sell silver and buy gold?

The last two years have been hard for the global economy. Global markets have been battered incessantly not just by the pandemic but the various geopolitical. Various factors have had an impact on the markets leading to the steady rise in the price of precious metals like gold. If you are wondering whether you should be buying or selling your buy or sell silver bullion Melbourne, you should not sitting on the fence for much longer. This is the best time to make decisions about your investments in the precious metal’s market.

The price of precious metals is likely to go up with governments putting in measures to inject some liquidity into the economy. The crisis that the Coronavius created in the markets has prompted governments to take more aggressive action to avoid the situation we all found ourselves in during the financial crisis in 2008.

As the price of gold rose, silver slipped down to lows of 28% in eight sessions. This was the worst decline the silver market has experienced since 1983. There are market analysts who still believe that the price will still go lower.

Silver at $15 had a lot of people worried and some wondered if this would not be the best time to sell silver bullion Melbourne . But is this the worst that it could get? Some analysts believed that things could still get worse before they get better for the price of silver. If you have silver and you buy into to that theory, you have to weigh your options: sell silver now or hold on to it for a little longer.

It would seem that silver has been lagging behind, losing ground against gold. This however, was expected. The pattern is nothing new. What has been surprising for most investors is the silver ratio. At one point it reach 124 to 1 which hasn’t been in this century or the last.

Why is this important? First you need to understand what this ratio is and what it means. The silver-gold ratio is basically a measure of the relative strength of gold compared to silver. It indicates how much silver it would take to purchase an ounce of gold.

The ratio often hovers around 40:1 and 50:1 but now it is the 100 which is an indication that silver is attracting more precious metal investors. Investors often refer to the trade ratio at certain points to see what they should be buying more off or selling. The ratio of silver to gold is joined. Historically, the ratio has always evened itself out. Right now is the best time to consider whether you should sell silver bullion. The principle of buying low and selling high isn’t that easy to apply in precious metals markets because of its uniqueness, however silver is still one of those metals that will be valuable for a long time. We might be in the midst of a precarious time and facing a future that is largely uncertain. However, having silver bullion can help you get out of whatever financial hole you find yourself in at this point in time.