Because of the recent Fed news, we saw that a disturbance spread in the market and sharp declines were seen in different financial markets including Bitcoin and metals. Especially if I talk about gold and silver, a sharp crash was seen which was the result of this Fed news.
First, understand what was in the Fed news that caused the price of silver and gold to fall. The Fed chairman, in the recent news did not cut rates. Instead he said that in the next period the Fed interest rate would be higher. Because of this the value of the dollar becomes stronger and metals and other crypto assets fall in price.
Remember, whenever rates increase, metal prices go down and whenever rates are cut, metal prices go up. So when the Fed rate hike happened we saw that the prices of gold and silver suddenly started declining.
If I look at the chart according to the 4 hour time frame then within a period of one to two days, around a 15% price decline happened. Usually, silver which was trading at $67 per ounce,= fell and is now trading at $58 per ounce, which is more than a 15% decline.
So in such a situation, what is my strategy? Because I am investing in silver and applying a grid strategy. I invested $1,000 in silver at $67 per ounce. My second buying which I did under the grid strategy was around $60.3.
So up to now I have invested $2,000 and if i calculate the average of these positions, it comes to around $63.3 as my average price while the current price at this time is $58.
DCA is currently the best opportunity to do in silver. Many investors think that the price of silver will continue to fall because next interest rates will increase further which will move money flow out of silver and gold and into USD and other U.S. bonds.
But I do not think so. Rather I say that every dip is a chance for me to fill my bag, because these are metals and their demand will always remain. In every era, their demand will continue to increase because they have real use cases.
So my next buying point is around $50. I will invest in silver at $50 per ounce. After that, my fourth layer will be at $45 and another layer will be at $40. At least until $40, I will keep doing DCA and wait for it to recover back, from which I expect a huge profit.
Those investors who are currently stuck in gold and silver do not need to worry because this is not like crypto whose use cases are often uncertain. Since silver has a strong use case, therefore the chances of its price increasing are higher.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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