Since silver price has dropped to $34.57 recently, based on your experience despite of the price do you still think buying more silvers for a long term investment a good idea? Will the price reach above $50+ eventually?
I think precious metal in the long run always goes up...so in that sense it is a good investment IMHO. However, there are many other investment opportunities that are more stable and more consistently increase than precious metals...so from that end it is a bad investment. I prefer to invest in things (something stable like a mutual fund) other than metal and stick to silver and gold as collectibles.
I agree with Camaro that PM by itself is never the greatest return. It is a good asset to own as portfolio protection and as a contra asset, though, and as such provides good downside protection to an overall portfolio.
I am sure that the silver price will eventually reach (and surpass) the $50 mark but it will not do it this year IMO. I think that will happen sometime after 2011 but I do not know exactly when after 2011. As long as the dollar is continuing to go down in value and the U.S. gov't is still on its out-of-control spending path and running up the national debt and huge deficits, then gold and silver will continue to go up in the long term. Short term, I think that it will go continue to go down and bottom out at $26 sometime this Summer (late June/early July). The run-up in 2010 through April 2011 was too far too soon and that is why IMO this smackdown was bound to happen. No one really knows where silver will head in the future and what I just said was just a guess on what I think that silver will do short term and long term. The only thing that I know is that silver is very volatile and you will have upmoves and downmoves as you have probably witnessed so far this year.
