Silver, shine on me

If you go to eBay you will find prices for physical Silver to be at least 20% higher per ounce than the spot price. This supply/demand imbalance is persistent now for many many weeks already. Imagine the next few months not to be as favorable as typical for the investor at this time of the year. Imagine it not as typically quiet and what this might do to Silver prices. Some speculate a market crash which drags due to margin calls all asset groups down. This might be the case – or not. We find a “wait and see” approach in looking for a cheap spot to acquire physical Silver high risk. Silver, shine on me. Now! A more conservative move. No need to fill the vault if you find prices overbought. But not starting to accumulate the shiny metal in small batches could end up in not getting any at all.


In the modern world, we tend to look for a bargain. In trading, this easily supersedes to even greed. Think again. Think value. You buy a tangible. One of the greatest benefits to have a few Silver coins at home is psychological stability. It feels good to know that you have a barter as a last resort. There are reasons why we have used Silver for more than 2,500 years as a means for exchange. Even if you never have to tap into your backup plan, holding small denomination physical silver is likely for long holding periods, to provide the additional growth in value. It is a good investment for your children and grandchildren. A tangible legacy of you caring and thinking ahead.


Silver, Daily Chart, History repeating itself – Silver, shine on me:


Silver in US Dollar, monthly chart as of October 23rd, 2020


Looking at the monthly chart above, we find that Silver has been trading for long periods in the range between US$14 to US$19. The last time it broke this range to the upside was in the second quarter of 2010. This breakout was preceded by a steep swift move down (A to B) through the whole range with an immediate bounce of 100%.


No different this year. We also broke in the second half of the year through US$19, precisely ten years later and had an identical preceding move. Prices found resistance near the US$31 area (C) in 2010. They have just recently bounced from the same distribution zone (C) as well.


And in 2011 Silver nearly doubled in just three months’ time (E). Probabilities show that Silver could experience a steep move like this in the present time as well. You do not want to get caught of having to act reactionary in a steep leg like this chasing a possibly dwindling decline in the shiny metal.


Silver, Daily Chart, Range contraction before election:


Silver in US Dollar, weekly chart as of October 23rd, 2020


The weekly time frame shows Silver prices in a directional advantage with a bullish triangle formation. After a price advance up to US$30, a natural decline from extended standard deviation levels (dotted lines) occurred over the last 11 weeks. There is a good probability for a price decline breaking through the green support trendline. A fractal zone of support and the Fibonacci support levels of 0.618 and 0.5 are below for a possible bounce. Breaking in the direction of the trend could catapult prices quickly by a 20% increase from US$25 back to US$30 again.


Silver, Daily Chart, Stuck in a tight range:


Silver in US Dollar, daily chart as of October 23rd, 2020


The daily chart shows two predominant factors. For one, a volume analysis indicates a strong support zone at US$24.15 (green horizontal line). And secondly, the round number of US$25 is significant resistance (red horizontal line). Especially this week’s trading was dominated by US$25 acting as a magnet to price. The indecision aspect of price on this smaller timeframe with no clear resolution for direction does not provide for an anticipated low-risk entry point. As such, letting price behavior guide the trader first for the possible breakout direction is the sensible course of action.


Silver, shine on me


We see value flowing from paper money to tangibles. Have you noticed the construction boom around you? Who is going to live in all these buildings? We noticed the used car market to have increased on single-vehicle base prices by an unusual percentage. If odd outside markets like these find an imbalance at their supply/demand ratios couldn’t it be concluded that a haven as obvious as Silver might not likely see bargain values right now? You might see high volatility in spot prices soon, but that doesn’t mean you will be able to stock up on physical Silver for cheap.


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.

Recent Posts

Stay Up-To-Date with New Posts

Search By Tags

join my free

telegram Group

Mentorship

packages

download my

free book