Silver, don’t be fooled
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 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.
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.
Gold in US-Dollar, Monthly Chart, Stacking Odds:
Gold in US Dollar, monthly chart as of March 5th, 2021.
A great way timing your Silver entry is also looking at inter-market relationships. Once Gold, the sector leader, will find its support, Silver will follow. This technique might help distinguish if Silver will be bouncing from primary or secondary POC in the upcoming week (as indicated in the first chart of this article).
The monthly chart above shows that Gold has entered a prime buy zone between US$1,650 and US$1,700. Both the Fibonacci retracement and the fractal volume analysis demand zone substantiate that fact.
Gold in US-Dollar, Monthly Chart, Silver, don’t be fooled:
Gold in US Dollar, monthly chart as of March 5th, 2021.
Another view at Gold reveals that it bounced strongly last time it touched its simple 20 months moving average. It is a confirmation that we might be able to temporarily bottom here and support a possible Silver up move. In such a case Silver might be temporarily topping by mid-August to mid-September this year. At that time, Silver will be ripe for partial profit taking to reduce long-term risk by using our quad exit strategy.
Our thinking is all programmed for a hundred years to benchmark against dollars. I am sure you have noticed your groceries to be more expensive now or better said, everything being more expensive. Maybe thinking the dollar is worth less is a more somber way of perceiving the change. Benchmarking against Silver or Gold or even Bitcoin might be a more accurate measure of value perception. Average monthly wages in Venezuela representing a value of US$6 are an excellent example of what hyperinflation can look like.
If you are holding your wealth in US-Dollars only, you are at extreme risk. We are not too specific on Silver or Gold or mining companies or Bitcoin or land, but we are risk averse. We urge you to look critically at fiat currency holdings. The risk/reward-ratio of Silver at this time is excellent. Usable as a hedge against this risk!
Silver, don’t be fooled:
When you hear from many various sources that Silver “is the thing to buy,” it feels like “too good to be true.” Sound fundamental analysis shows that holding physical Silver is, in fact, a prudent course of action. Silver prices are manipulated. They do not reflect true value. Physical prices trading much higher than the spot price. Once truth can’t be suppressed anymore, we see a fair likelihood for Silver prices to advance rapidly. Our conservative targets for the Silver market point at annual highs near Labor Day. At that point we aim to take partial profits.
Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g
All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.
Important Trading Risks and Earnings Disclaimers - Terms of Use
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.
Terms of Use: Your use of this educational website indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions and trade at your own risk.