Silver: An Effective Hedge
Korbinian Koller | Mar 22, 2021 07:49AM ET
Why we find Silver to be the number one hedge towards an uncertain future, an excellent investment to make stellar returns, and a simple way to protect your wealth is as follows:
- Precious metals have a history of perfect risk mitigation of a portfolio
- Precious metals have an intrinsic tangible commodity value if held in physical form
- Silver is the underdog in its sector, needing to catch up with gold, providing for an additional edge
- Silver is trending (now in a consolidation period – and within this consolidation strong – after a potent first trend leg up)
- Fundamental facts point overwhelmingly towards a strong Silver demand
- Silver is in the public eye, the news, creating demand in various investor and consumer classes
- Actual proof of demand outweighing supply through the now consistently for a year divergence between spot and physical acquisition price for Silver (a 35% difference at the moment).
Monthly Chart of Gold/Silver Ratio, The turbo edge:/h3
A look at the monthly chart of the Gold/Silver-Ratio above shows that historically price violations of the 40 moving average result in a move much more closer towards a median zone. Imbalance, principle-based, returning to balance. This, even with the most moderate early area of a 43.50 level (our studies show a reasonable likelihood of a value of 18), provides a turbo stack-able edge for a Silver purchase. These additional boosters for a higher likelihood of success of your investment make all the difference.
Silver in US-Dollar, Weekly Chart, A healthy trend:/h3
The weekly chart of Silver shows that even though the last six months were one of consolidation for Silver prices, within that consolidation, there was consistent follow-through of strength for direction. You can make this out by eyeballing price within this sideways period (after the stellar advance from March 2020 to August 2020) creeping upward on the blue midline for the linear regression channel. Strong volume node price support at US$25 is now substantiated by holding through the Fed announcement this week. Consequently providing good support and low risk for more physical Silver acquisition.
Weekly Chart, Silver in US-Dollar, Silver, simple and effective:/h3
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The last 50 years on a monthly Silver chart bring to light that Silver can move for substantial distances. These bull trends live above the 100 moving average. The bears have their upper hands below this average line. Silver jolted out of a six-year bear range cycle far above the 100 moving average. Consequently probability is now on the side for Silver investors. That with quite some upside potential for the long run. We feel confident that Silver sees new all-time highs in the not-so-distant future and most likely three-digit figures not too far out as well.
A look at the monthly chart of the Gold/Silver-Ratio above shows that historically price violations of the 40 moving average result in a move much more closer towards a median zone. Imbalance, principle-based, returning to balance. This, even with the most moderate early area of a 43.50 level (our studies show a reasonable likelihood of a value of 18), provides a turbo stack-able edge for a Silver purchase. These additional boosters for a higher likelihood of success of your investment make all the difference.
Silver in US-Dollar, Weekly Chart, A healthy trend:/h3
The weekly chart of Silver shows that even though the last six months were one of consolidation for Silver prices, within that consolidation, there was consistent follow-through of strength for direction. You can make this out by eyeballing price within this sideways period (after the stellar advance from March 2020 to August 2020) creeping upward on the blue midline for the linear regression channel. Strong volume node price support at US$25 is now substantiated by holding through the Fed announcement this week. Consequently providing good support and low risk for more physical Silver acquisition.
Weekly Chart, Silver in US-Dollar, Silver, simple and effective:/h3
Get The News You Want
The last 50 years on a monthly Silver chart bring to light that Silver can move for substantial distances. These bull trends live above the 100 moving average. The bears have their upper hands below this average line. Silver jolted out of a six-year bear range cycle far above the 100 moving average. Consequently probability is now on the side for Silver investors. That with quite some upside potential for the long run. We feel confident that Silver sees new all-time highs in the not-so-distant future and most likely three-digit figures not too far out as well.
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