Silver Flash Crash - Is It Time To Buy Gold & Silver?

Summer Doldrums = Buying Season

I have been watching the precious metals markets ever since the price spike and subsequent crash of the early 1980's; and investing in Silver and Gold for over 25 years.

One recommendation I have made that has never come back to bite me in the butt was to buy Christmas stocking stuffer coins in the middle of the Summer when prices almost always sank to short term lows.

Often, Gold & Silver mining stocks bought in July could be sold in October or November for a handy 25% profit in just a few months due to the rebound of the metals price in the fall.

Silver Flash Crash

Flash crashes have become more frequent as high speed computerized trading has taken over what traditionally was done by humans - and is not likely to go away soon.

A few weeks ago it hit Ethereum BIG TIME (crashing the price 99.9%), and this past week it hit the price of Silver futures.

Silver bulls have long argued that the 'paper' price of Silver had nothing to do with the actual metal itself; well, good luck with that. Yes, maybe your local coin store will not sell to you at the lower price yet someone on the internet will...

So instead of getting all wound up about it, just accept what the world is and deal with it.

Silver is trading currently at its lowest price in some time; if you want to buy Silver, now is probably a good time (this is NOT investment advice, do your own due diligence).

Can it go lower? Yes, of course. Silver price is manipulated like nearly everything else and maybe moreso.

Yet as @dana-edwards suggested with crypto, stop day trading and look at the longer term fundamentals. If day trading was easy, everyone would be doing it.

Use a flash crash to buy something you already wanted at a sale price. Having limit orders in place can help with this task, just remember to renew them when they expire. (A limit order says I want to buy X quantity of something at X.XX price - with the X.XX price being lower than what it currently trades for.)

Flash Price Spikes

I cannot remember any instances of flash price spikes, though I suppose they could happen. Again, having a limit order in place for what you want to sell at a price you want to sell it at could become worthwhile for you. Again, perform your own due diligence and be aware of tax consequences when you trade.

Summary

In summary, Summer 'doldrums' that have been a recurring pattern of soft precious metals prices for decades can be your friend.

Don't fret the lower price of the metals you already own, just evaluate whether you want to buy more. There are times that you can front-run the doldrums by selling metals that are not long term holds for you in the HOPE that you can buy back at lower prices over the Summer.

Be aware, though, of Murphy's Law. The one time you bet big on Summer doldrums the price is going to go the other way!