Silver: Simple And Effective

Even as a savvy investor, you most likely have been challenged over the last year. The biggest challenges are the rate of change in the world and the number of unresolved issues. The market doesn’t like uncertainties. We, as humans, are also at some point over-saturated with variable news items and overall data overload.

Feeling safe requires simplicity. Being safe should be a core foundation for operating one’s daily life. When looking for safe havens for your wealth or investment opportunities, you may often get bombarded with a variety of opinions shoved into your face more than ever before. Silver is simple and effective.

Why we find silver to be the number one hedge towards an uncertain future, an excellent investment to make stellar returns, and a simple way to protect your wealth is detailed in the following:

  • Precious metals have a history of perfect risk mitigation for a portfolio.
  • Precious metals have an intrinsic, tangible commodity value if held in physical form.
  • Silver is the underdog in its sector, needing to catch up with gold -- thus providing an additional edge.
  • Silver is trending (now in a consolidation period – and it is strong within this consolidation – after a potent first trend leg up).
  • Fundamental facts point overwhelmingly towards a strong silver demand.
  • Silver is in the public eye, creating demand in various investor and consumer classes.
  • Actual proof of demand outweighing supply through the divergence between spot and physical acquisition price for silver (a 35% difference at the time of writing).

Monthly Chart of Gold/Silver-Ratio, The turbo edge:

Gold-Silver ratio, monthly chart as of March 18th, 2021.

Gold-Silver ratio, monthly chart as of March 18

A look at the monthly chart of the gold/silver ratio above shows that price violations of the 40 moving average historically result in a move towards a median zone. This, even with the most moderate early area of a 43.50 level (our studies show a reasonable likelihood for a value of around 18), provides a stack-able edge for a silver purchase. These additional boosters for the likelihood of success for your investments make all the difference.

Silver in US-Dollar, Weekly Chart, a healthy trend:

Silver in US-Dollar, weekly chart as of March 18th, 2021.

Silver in US-Dollar, weekly chart as of March 18

The weekly chart of silver shows that even though the last six months were a period of consolidation for silver prices, within that consolidation there was consistent follow-through of strength. You can make this out by eyeing the price within this sideways period (after the stellar advance from March 2020 to August 2020) as it creeps upward on the blue midline for the linear regression channel.

Strong volume price support at US$25 is now substantiated by holding through the Fed announcement this past week; consequently providing good support and low risk for more physical silver acquisition.

Weekly Chart, Silver in US-Dollar, simple and effective:

Silver in US-Dollar, monthly chart as of March 18th, 2021.

Silver in US-Dollar, monthly chart as of March 18

The last 50 years on the monthly silver chart bring to light that silver can move long and substantial distances. These bull trends live above the 100 moving average. Silver jolted out of a six-year bear range cycle far above the 100 moving average.

Consequently, probability is now on the side of silver investors. There is also quite some upside potential for the long run. We feel confident that silver will see new all-time highs in the not-so-distant future.

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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