Over the past several years, we've watched as the values of precious metals took a dive. However, it seems as though things are turning around in a big way at the moment. In particular, silver is creating an incredible opportunity. Today, we'll talk about why silver has been trending downward for so long, why recent downward movement lacks fundamental backing, what we can expect to see moving forward, and how binary options traders can take advantage of the trends.

Why Silver Has Been Trending Down For So Long

The value of silver followed gold's lead and started moving downward in late 2011, and for good reason. From 2008 to 2011, investors were worried about the state of the market. After all, the economic crisis of 2008 and 2009 led to fear around the world. As a result, investors were looking for ways to keep their money safe, and precious metals are one of the most well known safe havens out there. So, the value of silver climbed for some time. However, as the market recovered, investors had less and less of a reason to invest in silver. This led to declines in demand and ultimately, declines in the value of the precious metal that lasted for quite some time.

Why Downward Movement Over The Past Year Has No Fundamental Backing

There are two reasons that we see movement in the market, either fundamental or sentiment changes. Over the past year, the downward movement in silver has had little fundamental backing, meaning that the bearishness we've seen on the commodity is based in sentiment. The reality is that like all other commodities, the price of silver is heavily dependent on supply and demand, and while supplies remain steady, demand is quite a bit different. In fact, over the past year, demand for silver has climbed in a big way. You can see this from two sources, the US Mint as well as raw silver and silver jewelry imports in the United States. Both of these data points have been climbing in a big way. In fact, in the first day that silver bullion coins were available this year, the US Mint sold half as many coins as it did in the entire month of January last year. If that's not a clear indication of climbing demand for silver, I don't know what is!

What We Can Expect To See Moving Forward

Moving forward, I have an incredibly bullish opinion of what we can expect to see from silver. The reality is that at the moment, the commodity is ridiculously undervalued, and investors know it. That's why we're seeing such big spikes in demand. Another reason that I'm expecting to see overwhelmingly bullish movement in the value of the precious metal is the current condition of the market. Unfortunately, market conditions have been anything but positive. As mentioned above, silver is a safe haven investment. So, it tends to do incredibly well under poor market conditions. Considering the reasons for the decline, I believe that poor conditions are here to stay for a while, and this will push silver upward!

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, it's our job to predict where the value of an asset or multiple assets are headed. When it comes to silver, this job becomes incredibly simple. Knowing that silver is likely to climb as a result of climbing demand and poor market conditions, binary options traders should watch for strong call option opportunities. This will allow the traders to ride the trends up to the profits. Make sure to check our latest financial news for binary options traders.

What Do You Think?

Where do you think silver is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]