What Are the Best Tips for Investing in Silver?

Against the background of the continued rise in gold, investment in gold and silver has received increasing attention from investors. Because the silver investment threshold is lower than gold, investing in silver has gradually entered the investor's perspective. Since 1980, silver has been in a big bear market for more than 20 years, and the price of silver has been falling, which has led to a continuous decrease in the investment in silver mining, which has led to insufficient supply in the silver market. At the same time, the demand for silver in the manufacturing industry is increasing year by year, which is specifically reflected in the consumption of silver in industries such as electrical engineering, electronics, welding alloys and solders, jewelry, silver products, silver coins and medals. After rising in recent years, silver prices have reversed the big bear market since 1980.

Silver investment

Since 1980, silver has lasted more than 20 years.

Interpretation of silver repo channels

At present, there are two kinds of physical silver bars that customers buy in gold shops or investment companies themselves. They are technical silver bars. The purchase price is expensive, but there are fewer repurchase channels and the repurchase price is based on second-hand waste. Purchase, so the contraction is serious, there is no actual investment value, and the other is pure investment silver bar prices are also discounted, the sales price according to

	Investment Comparison of Silver Varieties
Investment Products	Boya Silver	Silver futures	Bank paper silver	Shanghai T + D	Tiantong Silver	Outer Disk London Silver
Quotations	Kg / RMB	Kg / RMB	G / RMB	Kg / RMB	Kg / RMB	Oz / USD
transaction hour	International linkage	Not linked in three stages	International linkage	Not linked in three stages	International linkage	International price
Trading mechanism	T + 0 bidirectional	T + 0 bidirectional	T + 0 bidirectional	T + 0 bidirectional	T + 0 bidirectional	T + 0 bidirectional
Whether there is a price transaction	Yes	no	no	no	Yes	Yes
Trading contract	15 kg	15 kg	100 g	1000 g	1 kg 15 kg 30 kg	100 ounces
Advance payment ratio	0	10%	100% full payment	10%	5% -12%	1% or lower
Handling fee	Nine ten thousandths	Two ten thousandths (unilateral)	0	16 / 10,000	16 / 10,000	$ 50
Spread	no	no	0.04 yuan per gram	no	8 points	$ 50
Stock fee / day	RMB 0.6 per kg / day	no	no	Two ten thousandths	Two ten thousandths	USD 3-5
Investment threshold	low	low	low	low	low	high
Financial security	Agricultural, Industrial, Construction, Huaxia Bank, Trilateral Trusteeship	Five major banks	Bank security	Bank security	Bank security	Overseas unsafe
Risk factor

Southern Silver Trading Market

Qingdao Golden Steward Precious Metals Management Co., Ltd. is a service organization mainly engaged in the trading of silver. The company was established on May 26, 2011. The company has a wealth of investment and wealth management experience, a mature research and development analysis team, can provide our clients with professional silver trading and other comprehensive services.
The company has a stable business, a new model and rapid development. While grasping the headquarters market, it continuously radiates to surrounding cities. Now it has established a number of directly-affiliated branches and

Since mid-March 2011, the price of silver has skyrocketed. In just over half a month, the price of silver has increased by nearly 50%, and there has been no decent pullback. Investors in silver leveraged trading shouted: "The risk is too great to dare to play!" The Shanghai Gold Exchange has also realized the risk and started to raise the silver Ag (T + D) contract yesterday.

SDB Gold T + D Account Opening Steps

(1) First bring your personal certificate to the business department of SDB

Buying and selling:

definition:

A buy order is an order to buy. The buying price can be lower than the current price, or it can be higher, which can support or help the silver price. A sell order refers to an order to sell. The selling price can be lower than the current price, or it can appear higher, which has the effect of suppressing or helping the silver price.

Interpretation:

Generally speaking, buying orders will provide support to the silver price, and even help the silver price stop rising, or accelerate the rise; Selling will suppress the silver price, let the silver price fall, or accelerate the decline. However, whether a buying order (or selling order) can play a supporting / assisting (or resistance / falling) role on the price of silver depends on the comparison of the strength of the order. If there are more buying than selling at the same price, it can provide support for the silver price, help the silver price stop rising or accelerate its rise; if there are more selling than buying, it will put pressure on the silver price and the silver price will suffer Suppressed, the decline during the rise or accelerated decline during the decline. Therefore, when we learn from various channels that there is a buying or selling order at a certain price, we must be very careful about this price and pay attention to the risk of sudden rise or fall.

Take Profit:

definition:

Take profit, as opposed to stop loss, refers to closing out positions in a timely manner when the profit of an investment reaches a predetermined amount, in order to avoid a sudden drop in the price of silver and the disappearance of the forthcoming profit. The purpose is to make investors comfortable with earnings. As with stop loss, take profit is generally an order that is opposite to the direction of opening a position, but unlike stop loss, the price is set in the same direction.

For example: if the investor made a lot of orders at 1.3650, then his take profit is generally set above 1.3650, such as 1.3800, and the direction is sell; when the price develops in the expected direction and rises to 1.3800, the take profit order is closed. Triggered, the transaction at this time is the selling direction, the position is closed, and the profit is in hand.

Interpretation:

Generally speaking, take profit will cause resistance to the original operating trend of silver prices. If the take profit order in the rising process is triggered, the price of silver will fall; when the take profit order in the decline process is triggered, the silver price will rebound.

Take Profit:

definition:

Profit-taking usually means that after the price rises for a period of time, the investor sells the assets held by him to achieve profit. Broadly speaking, profit-taking is the closing of a position for profit. Profit-taking, the transaction made is the opposite to the direction of the opening position. Therefore, profit-taking is similar to take-profit, but profit-taking is more an investor's active and immediate behavior, and generally trades at market prices ; Take profit is generally an order, which is a specific price set in advance.

Interpretation:

Because profit-taking operations are opposite to the opening direction, investors' profit-taking behaviors have an impact on precious metals, similar to take profit, and will also hinder the performance of silver prices in the original direction. For the decline during the rise and the rebound during the decline.

Short covering:

definition:

Short covering refers to the behavior of an investor who was originally short in the precious metals market (bearish sell first) when the trading direction and the position held are reversed and forced to close out or go back long (buy), which will make silver The price rebounded at a low level, or accelerated to rise when it rose.

Interpretation:

Since the original investor was short and the direction was to sell, it was necessary to buy it when closing the position. In this way, the original shorts became longs, which helped fuel the price rise, allowing the silver price to stop falling and rebound when it fell, and accelerate its rise when it rose. In short, short covering will help silver prices rise, the only difference is whether it is a low rebound after a decline or an accelerated rise during the rise.

breakthrough:

definition:

Breakthrough refers to a kind of price fluctuation generated by the precious metals after a period of consolidation, and generally refers to the precious metals breaking through resistance levels upwards. There are two types of breakthroughs: false and effective.

How to distinguish between false breakthroughs and effective breakthroughs:

Breakthrough resistance has important analytical significance for the choice of buying and selling timing. Therefore, it is important for investors to figure out whether an effective breakthrough or an ineffective breakthrough is. The following provides some judgment methods and market principles, but the specific situation still needs to be analyzed in combination with the prevailing market conditions.

(1) The breakthrough in closing price is a real breakthrough

Breaking the trend line at the closing price is an effective breakout and therefore a signal to buy. If the price has broken through the resistance level, but the closing price is still lower than the resistance level, this proves that the market did indeed want to try higher, but the buying was not continued, and the selling price surged, so that the price finally fell back at the close. Such a breakthrough is not an effective breakthrough, that is to say, the resistance level is still valid, and the market's weak trend has not changed. At this time, it must not chase up, and it is easy to sell on rallies. On the contrary, it represents the formation of a strong pattern, which is an effective breakthrough. The silver price fluctuation range is expected to go up to a bargain and can be bought on dips.

(2) Principles for judging breakthroughs

A. After finding a breakthrough, observe another day

If the silver price continues to develop in the direction of the breakthrough for two consecutive days after the breakthrough, such a breakthrough is an effective breakthrough and a secure buying opportunity. On the contrary, it is a false breakthrough and it is easy to sell on rallies.

B. Pay attention to the high and low prices two days after the breakthrough

If the closing price of a certain day breaks through the resistance line and develops upward, the next day, if the transaction price can cross its highest price, it means that there is a large number of follow-up orders after breaking the resistance line, which proves that the breakout of the previous day is an effective breakout. Buy. Conversely, when the price of silver moves downwards when it breaks through the uptrend line, if the next day's trading is performed below its lowest price, then this is a false breakout.

When silver investment chooses a platform or trades, it often talks about the word "leverage", what is leverage, what are its advantages or risks. In short, it can be summarized into the following two sentences.

High leverage, high profit and high risk

Low leverage, low profit and low risk

Generally, the leverage below 20 times is low leverage, such as Juntai Silver 10 times leverage. Leverage higher than 20 times belongs to high leverage, as expected source silver 100 times leverage.

Use an analogy:

Zhang Sheng has 1,000 yuan in his hands. Hold a batch of eggs with 10x leverage. If the price of eggs goes up 2%. It is equivalent to a 20% increase. That is, Zhang Sheng now owns 1,200 yuan. Win 200 yuan, otherwise lose 200 yuan.

Li Sheng also has 1,000 yuan in his hands. Hold the same batch of eggs as Zhang Sheng with 100 times leverage. If the price of eggs goes up 2%. It is equivalent to a 200% increase. That is, Li Sheng now has 2,000 yuan. Win 1,000 yuan, otherwise lose 1,000 yuan.

This metaphor can be seen. No matter what kind of leverage is selected, the same amount of products can be sold with the same funds. However, the effect of product price enlargement or reduction will be magnified according to the ratio of leverage. When egg prices rose by 2%. Zhang Sheng, who chose 10 times leverage, made a profit of 200 yuan. Li Sheng, who chose 100 times the leverage, made a profit of 1,000 yuan. At this time, double the profits made by doing high leverage. This is the advantage of high leverage. Earn less with leverage.

But when the egg price fell by 2%, Zhang Sheng, who chose 10 times leverage, lost only 200 yuan. Li Sheng, who chose 100 times leverage, lost 1,000 yuan. It can be seen that at this time, the loss of high leverage is lost. This is the risk of high leverage. And the low leverage loss of 200 yuan will not cause a liquidation and other prices to rise back can still be set back. This is the advantage of low leverage.

The example given here is more extreme. In the actual battle of precious metals, in the series of methods such as position control, market analysis, and stop loss, generally, the phenomenon of liquidation will not occur. Kaimenhong Investment Company conducts regular "spot gold and silver systematization training" and invites well-known investment master Mr. Li Zhishang as a lecturer. High leverage and low leverage each have their own advantages and disadvantages. When investing in silver spot investment, investors can choose different leveraged products according to their own technical strength and operating taste. Choosing a good service provider also has a great relationship, which can avoid risks and get better investment advice or strategies.

One:

1. Supply factors:

The supply side factors are:

(1) Spot silver stock on the ground

There are currently approximately 137,400 tons of spot silver in the world, and the stock of above-ground spot silver is still growing at an annual rate of about 2%.

(2) Annual supply and demand

The annual supply and demand of spot silver is about 4,200 tons, and the annual output of spot silver accounts for 62% of the annual supply.

(3) New gold mining costs

The average total cost of spot silver mining is approximately less than $ 260 per ounce. Due to the development of mining technology, the cost of spot silver development has continued to decline over the past 20 years.

(4) Political, military and economic changes in the spot silver producing countries

Any political and military turmoil in these countries will undoubtedly directly affect the amount of spot silver produced in that country, and then affect the world's spot silver supply.

(5) Spot silver sales by the central bank

The Central Bank is the largest holder of spot silver in the world. In 1969, the official spot silver reserve was 36,458 tons, which accounted for 42.6% of the total silver stock at that time. By 1998, the official spot silver reserve was about 34,000 tons, which accounted for 24.1% of the total spot silver stock. Based on current production capacity, this is equivalent to 13 years of world spot silver ore output. Because the main use of spot silver has gradually changed from important reserve assets to metal raw materials for jewellery production, either to improve the country's international balance of payments or to curb international gold prices, the central bank's spot silver reserves have been in absolute terms and relative for 30 years. There has been a large decline in quantity. The decline in quantity is mainly due to the sale of inventory and spot silver in the spot silver market. For example, the Bank of England's large-scale sell-off, the Swiss National Bank and the International Monetary Fund's preparation to reduce spot silver reserves have become the main reasons for the recent decline in the international spot silver market gold price.

2. Demand factors:

The demand for spot silver is directly related to the use of spot silver.

(1) Changes in the actual demand for spot silver (jewellery industry, industry, etc.).

Generally speaking, the speed of the development of the world economy determines the total demand for spot silver. For example, in the field of microelectronics, more and more spot silver is used as a protective layer; in the fields of medicine and building decoration, although advances in technology have made spot silver Alternatives continue to appear, but demand for spot silver is still rising due to its special metal properties.

In some areas, local factors have a significant impact on spot silver demand. For example, India and Southeast Asian countries, which have always had a large demand for spot silver jewelry, have been affected by the financial crisis. Since 1997, the import of spot silver has been greatly reduced. According to data from the World Spot Silver Association, demand for spot silver in Thailand, Indonesia, Malaysia and South Korea They fell by 71%, 28%, 10% and 9% respectively.

(2) The need to maintain value.

Spot silver reserves have always been used by the central bank as an important means of preventing domestic inflation and regulating the market. For ordinary investors, investing in spot silver is mainly to maintain value under inflation. In the economic downturn, the demand for spot silver rose due to the insurance of spot silver against monetary assets, and the price of gold rose. For example, in the three US dollar crises after World War II, due to the severe balance of payments deficit in the United States, the dollar holdings of countries have increased significantly, market confidence in the value of the US dollar has been shaken, and investors have snapped up spot silver, which directly led to the Bretton Woods system. Bankruptcy. In 1987, due to the depreciation of the US dollar, an increase in the United States deficit, and the unstable situation in the Middle East, all of these also contributed to a sharp rise in international gold prices.

(3) Speculative demand.

Speculators use the gold price fluctuations in the spot silver market and the trading system of the spot silver futures market to sell short or replenish spot silver in order to artificially create the illusion of spot silver demand. In the spot silver market, almost every large decline is related to the hedge fund company borrowing short-term spot silver to sell it on the spot spot silver market and to build a large number of short positions on the COMEX spot silver futures exchange. When spot silver prices fell to a 20-year low in July 1999, data released by the US Commodity Futures Trading Commission (CFTC) showed that COMEX speculative shorts were close to 9 million ounces (nearly 300 tons). When a large number of stop-loss orders were triggered, the spot silver price dropped, and the fund company took the opportunity to make up for the profit. When the gold price rebounded slightly, hedging forward selling orders from producers suppressed the further increase in spot silver prices, while giving The new opportunity for fund companies to re-establish short selling positions formed a decline pattern of spot silver prices at that time.

3. Other factors:

(l) Impact of the US dollar exchange rate.

The exchange rate of the US dollar is also one of the important factors affecting the fluctuation of gold prices. Generally, in the spot silver market, when the dollar rises, the gold price falls; when the dollar falls, the gold price rises. A strong US dollar generally means that the domestic domestic economic situation is good. US domestic stocks and bonds will be sought after by investors, and the function of spot silver as a value storage method will be weakened. The decline in the exchange rate of the US dollar is often related to inflation and the stock market downturn. Spot silver The value-preserving function is reflected again. This is because the depreciation of the US dollar is often associated with inflation, while the value of spot silver is higher, and when the depreciation of the US dollar and inflation intensify, it tends to stimulate the rise in the value and speculative demand for spot silver.

(2) The monetary policy of each country is closely related to the international spot silver price.

When a country adopts a loose monetary policy, due to falling interest rates, the country s money supply increases, increasing the possibility of inflation, which will cause the price of spot silver to rise.

(3) The impact of inflation on the price of gold.

In this regard, long-term and short-term analysis should be done, and the degree of inflation in the short-term should be combined. In the long run, if the annual inflation rate changes within the normal range, its impact on the price of gold will not be large; only in the short term, prices will rise sharply, causing people to panic, and the unit purchasing power of the currency will decrease. rise.

(4) The impact of international trade, finance, and external debt deficits on gold prices.

Debt, a worldwide problem, is not only a phenomenon peculiar to developing countries. In the debt chain, not only the debtor countries themselves are unable to pay their debts and cause economic stagnation, but the economic stagnation further worsens the vicious circle of debts. Even creditor countries will also be in danger of financial collapse due to their relationship with debtor countries. At this time, all countries will reserve a large amount of spot silver in order to keep their economies harmless, causing the spot silver price to rise.

(5) International political turmoil and war.

Major international political and war events will affect gold prices. The government paid for war or to maintain the stability of the domestic economy, and a large number of investors turned to spot silver hedge investment, all of which would increase demand for spot silver and stimulate gold prices to rise.

(6) the impact of stock market prices on gold prices.

Generally the stock market fell and the price of gold rose. This mainly reflects investors' expectations of the economic development prospects. If everyone is generally optimistic about the economic prospects, a large amount of funds will flow to the stock market, the stock market investment is enthusiastic, and the price of gold will fall.

In addition to the above factors that affect the price of gold, the intervention activities of international financial organizations, and the policies and regulations of national and regional central financial institutions, will also have a significant impact on changes in the world spot silver price.