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Silver Chartbook - Silver, Don't Be Fooled

Florian Grummes profile picture
Florian Grummes


  • If you are holding your wealth in US dollars only, you are at extreme risk.
  • Our monthly chart shows that gold has entered a prime buy zone between US$1,650 and US$1,700.
  • While silver prices trade sideways, we think it’s time to buy again.
  • There is a likelihood that prices might already take off in the upcoming week here from the secondary volume analysis support point (POC = point of control).

It is no secret that something is just quite not right in the Silver market. Recent news claim that historically this specific market is held within range by large wall street players. There are rumors of a short squeeze and a US$1,000 target where five figure percentage profits could be made. And so much more. As investors, we need to focus on facts. Evaluate probabilities and place high likely low-risk bets.

As much as all these stories talk about Silver (XAGUSD:CUR) and iShares Silver Trust ETF (SLV) as well as the Sprott Physical Silver Trust (PSLV) going up in their sum, they try to fool investors by keeping them on the sidelines since they introduce doubt. While prices trade sideways, we think it’s time to buy again.

Here are the facts why there is a higher likelihood for Silver prices to advance:

  • A lot of news items attract buyers. Silver is in the limelight.
  • Physical Silver prices trade up to 30% over the spot price.
  • We had a bullish twelve-month period for Silver prices. Consequently, describing the first leg of a trend. With a high probability of two more legs to be following.
  • We see money inflow into the precious metal sector as a whole. These are safe haven seeking investments due to the threat of hyperinflation caused by unprecedented fiscal and monetary stimulus.
  • Possible highest ever physical delivery months within this year for Silver futures traded on the COMEX exchange.

Daily Chart of Silver in US Dollars, Good support:

Silver in US Dollar, daily chart as of March 5th, 2021.

Looking at this sideways range, we find ample support of prices within the range right now as a healthy spot to acquire physical Silver. We pointed out that last time around prices touched the simple 200 moving average, Silver prices exploded. We

This article was written by

Florian Grummes profile picture
Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 25 years of experience in financial markets. Via Midas Touch Consulting he is publishing weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental and sentiment analysis into one often accurate conclusion about the markets. www.midastouch-consulting.com

Analyst’s Disclosure: I am/we are long XAGUSD:CUR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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