So you may have seen a "Flash Crash" today in precious metals prices.
Dropping so much in one short period is always scary for us investors that keep a weary eye on the price charts. But I say the same thing to myself and say the same to all other PM investors out there at the moment - especially the new ones who might be experiencing their first flash crash...
Keep calm and carry on!
This is not new. I have lost count of the number of flash crashes that have happened over the last 18 months and when these dips and drops happen I always get questions about silver prices and why they have dropped so much. If I knew why and when silver would drop like it did today I would be a billionaire having shorted the silver markets!
There may be responses to world events and other manipulation afoot - but the good news for all of you newbie silver investors out there is that regardless of how low the silver price drops...YOU HAVEN'T LOST ANY MONEY!!!
You only lose money on metals when you sell them for less than you bought it for. If you hold your metals until the price recovers and at a time of your choosing then all will be well in the end. If you bought silver as a quick flip turnaround metal to make a few bucks on in a week - then this week is a bad one for you.
There is, however some good news about today's silver price "Flash Crash" - SILVER IS MUCH CHEAPER!
It was only a few days ago that I posted about 3 reasons why I love silver, one of which was that it is so cheap right now! And today it is even cheaper than it was before. Gold has held pretty steady as its little silvery sister took a dive, this means that the silver:gold ratio has extended once again!
This is good for us who are buying silver right now and plan to convert it to gold in the future (when the ratio goes back down). If you wanted to buy an OZ of gold today you could get instead nearly 79.5 oz of silver. When the ratio hits back to the 60's or 50's you could trade that silver in for 1.5 oz of gold and not have spent a penny!
So if your plan for the future is to get some cheap gold then now is the time to buy silver!
This was all my own opinion - not financial advice. Please be aware that PM's are a volatile market.
Good luck to everyone out there and if you are like me...buy some more silver, it will make you smile!
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Backyard Bullion