Silver, Don’t Be Fooled

It is no secret that something is just quite not right in the Silver market. Recent news claims 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 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. Silver, don’t be fooled.

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-Dollar, Good support:

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

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 expect a similar scenario now. 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). These stacked up edges of support provide for tighter stops and great risk-reward ratios.

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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