Now silver will sine; expected to touch a record high but should you wait?
The recent upswings in the gold have created a positive sentiment for silver. Now, people started to accumulate silver in view to manage high level of gold to silver ratio. The price of silver has increased from $18 to $24nin two month and the exchange traded product (ETP) of silver has increased the physical holding to 280 million ounce till July 2020.
It has been expected that in longer term the gold to silver ratio will be 30x to 50x and the price of silver will reach a historic high with its net managed position. The obvious reason for this expectation is the upcoming inflationary pressure due to larger printing of money globally. The global inflation is likely to very high in long run.
On July 30, the future price of silver has decreased by 4.28 percent on multi commodity exchange (MCX) and made the metal more attractive. According to Kotak Securities there lies possibilities of some profit for investors but, invstors should wait for corrective dip before taking any long position in silver.
Thus, investors who have earlier holdings of silver should wait for long term to generate high profit and people who want to take a long position in silver should wait for short term correction.