Silver, Equity And Currency Turning Points: Silver Has Seen Its Lows
Sid Klein | Mar 01, 2015 12:19AM ET
Investment: asset classes turning points
Silver has seen its lows, and the 4-year VXSLV chart ), was a precursor to a resumption of the secular bull market which began back at the beginning of the century.
The correction that began this week to the all-important 25-level on the VXSLV may be underway now and could conclude abruptly at any time. As I warned (see 2nd link above), the best way to time entry into the iShares Silver Trust (ARCA:SLV) should be via proper timing of the VXSLV. And that ended up being the case.
The SLV bottomed first, and buying after the VXSLV lift-off was ideal. Premiums were higher, but the lower metal level was the offset.
Regarding the above-linked 4-year VXSLV chart, please note the eruption that occurred with the SLV at $49 in April 2011. As both go in the same direction, the double-whammy will profit the patient long term premium-holders in a historical fashion.
So, as also discussed last quarter, volatility (time premiums) will revert to trending WITH silver, as opposed to asymmetrically to it (as was the case during this just-completed post-2011 bear cycle).
This makes sense, I have argued, since there is the law of diminishing returns on the downside, while there is no limit to the upside.
The 1-year daily SLV chart reflects a likely completed decline in the short term (intra-month), as the stochastic is plainly oversold and turning up, albeit with no positive diverges as yet; none are required, however.
This is particularly so when contemplating silver's countless and previously enumerated positive long term fundamentals and their corresponding charts (see charts below).
This year's move up represents a mere blip on even a euro , turning bullish or bearish as the case may be, according to who I felt would be next in line to print. So,...
Business: tailor-made investments and maximal differentiation
I have already fashioned extremely leveraged very long term warrants in precious metals, equities and currencies. However, it has been brought to my attention that a fund or pool would be preferable for many.
In non-US data bases of some 15,000 hedge funds, there is not a single one that represents a portfolio of tailor-made long term, defined risk and highly leveraged instruments in multiple asset classes, let alone one that benefits from calamitous market conditions, without depending on one to be successful.
Get The News You Want
That extreme-most differentiation which fulfils multiple strategic needs for many, further enhancing the number and nature of business opportunities. This is very much the case for any party that seeds the fund or pool, or makes introduction to such investors.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.