Guide to Investing in Silver – Chapter 10: Silver Futures

This is chapter number 10 out of 15. Read the rest:

Read Guide to Investing in Silver – Chapter 1: Introduction
Read Guide to Investing in Silver – Chapter 2: Starting out as a Silver Investor
Read Guide to Investing in Silver – Chapter 3: Silver as an Investment Vehicle
Read Guide to Investing in Silver – Chapter 4: Methods of investing in Silver
Read Guide to Investing in Silver – Chapter 5: Investing in Silver Bars
Read Guide to Investing in Silver – Chapter 6: Silver Coinage as an Investment
Read Guide to Investing in Silver – Chapter 7: Silver in Exchange Traded Funds (ETFs)
Read Guide to Investing in Silver – Chapter 8: Silver Mining Stocks
Read Guide to Investing in Silver – Chapter 9: Silver Mutual Funds

Silver’s prices are indirectly related to the economy of the USand the world major economies. The price of silver has a predisposition to increase when the economy is strong. Thus it is beneficial if you read the economic reports on the country’s Gross Domestic Product(GDP).

You should also take note of the Consumer Price Index as this an indication of the rate of inflation. Inflation rates can affect the price of silver as well. The higher the rate of inflation, the higher will be the price of silver.

With the Silver Warehouse Stocks report, you will have an idea of the daily quantity of silver inventory that are available. Falling inventories are indication that silver price are going to increase.

Silver Futures Trading Tips:

Generally, the prices of silver and gold move in conjunction with each other. Take note of the price spread between these two metals, if the spread widen in extreme, traders should buy silver and sell gold.

If the inflation rate is high, you should buy silver as a safe haven to protect the value of your investment portfolio.

Take note of holding silver Futures overnight. Silver prices can differ greatly between the previous day closing and the next day opening if a crisis had happened around the globe during the night which affected the silver market. Price fluctuations of 20 to 30 cents are not unusual in this kind of situation.

Read Guide to Investing in Silver – Chapter 11: Silver Certificates
Read Guide to Investing in Silver – Chapter 12: Comparison between various forms of Investment in Silver
Read Guide to Investing in Silver – Chapter 13: Investment in Silver versus Gold
Read Guide to Investing in Silver – Chapter 14: How to invest in Silver
Read Guide to Investing in Silver – Chapter 15: Conclusion