Silver´s Situation Changed, You Change

Silver, Bars, 5000 Grams, Real Value

When the situation changes, you have to be willing to change with the situation. It is this required flexibility that distinguishes the professional from the amateur, not only in trading. While the bigger picture is the same, we have seen many unusual pattern formations over the last two months. Intraday trading behavior similarly is atypical for Silver and points towards manipulation. Luckily, changes like this also provide opportunities. Silver´s situation changed, you change.

This week’s price action changed the probability for the short term towards the highest likelihood of continued sideways movement within the established range of the last eight months. Consequently, opportunities have been opening up in the related mining sector. Meaning, now is the time to prep this additional field of leverage and sift through one’s choices on how to strike once Silver has found its bottom.

Weekly Chart of Silver Spot Price compared to Mining Companies:

Silver-Spot-Price compared to Mining Companies, weekly chart as of March 24th, 2021.

Silver Spot Price compared to Mining Companies, weekly chart as of March 24th, 2021.

The main work in trading is to be prepared. “Make a plan, and trade that plan.” Comparing fundamentals and charts, we found the above candidates to be prime for additional holdings to your spot price trading and physical holdings.

The weekly comparison chart shows the strong relationship of mining company valuation towards the actual Silver spot trading price. It also illustrates a beta component meaning the miners move from a percentage perspective proportionally more than the spot price. Depending on your risk appetite, you can pick what suits your aggressiveness of investment style best. This requires adjustment of risk through position size. Miners offer a stock market exposure with leverage and an instrument where you wouldn’t mind owning a part of the company you are holding stocks in. This in an environment where thinking from a wealth preservation perspective is vital.

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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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