Selected Article

Silver - Nerves of steel required.

by Timothy Straiton
Sunday 26th July 2020

We can't say whether an investment in silver right now is a good idea, however on March 13th 2020 we recommended our readers to take a long position. At that time the price was 14.68 and went as low as 11.61 on the 18th of March. Since then, the silver market has doubled in value, reaching 23.23 last week. Currently, silver is trading at 25% above its 40 week moving average and could target heavy resistance at 26 in the weeks ahead.

The gold/Silver ratio has plunged from a high of 128 made on 18th of March 2020 and now stands at 83.38, which is close to the Fibonacci 50% retracement level going back to 2011. From our point of view a great deal of uncertainty and random movement lies ahead in the precious metal markets.

 

 

A correction in the bond and equity markets seems likely and could trigger margin calls and with it force liquidation of precious metal holdings. Further out and when the dust has settled, the outlook for silver and other precious metals looks favourable as long as the manipulation of interest rates by central banks remains a credible strategy.


 

Charts courtesy of