Silver Shrugs Off Attacks
Korbinian Koller | Nov 21, 2021 12:24AM ET
The list is long of arguments why silver prices haven’t advanced further yet, or might never take off. Market manipulation is one of them. While there is evidence that markets have always been manipulated, prices have eventually reached appropriate price levels.
Another recent attack is a news item claiming Bitcoin is to replace gold as an inflationary hedge tool, which in turn would have a substantial effect on silver. The market cap of all digital currencies is at US$3 trillion, and that of gold is US$11.7 trillion . In a US$615 trillion market cap world, gold and Bitcoin are a tiny niche. They can coexist with their relatively small size and their intrinsically different usefulness, primarily through performing various functions.
Silver weekly chart - strong along with gold/h2
The weekly chart illustrates price behavior over the last 15 months. Silver prices are trading near the center of the sideways range.
Gold weekly chart - rumors shrugged off/h2
The weekly chart of gold isn’t much different from where prices stand. In short, there is no evidence that gold has lost its luster. Otherwise, we would see silver trading in a relationship much lower. Rumors are just that—rumors! Silver is shrugging them off.
Silver quarterly chart - room to go/h2
A historical review with a quarterly chart over the last 18 years reveals that silver prices can sustain extreme extensions from the mean (yellow line) for extended periods. Using the extreme of the second quarter in 2011 as a projective measurement (orange vertical line) for an upcoming target would provide for a price target more than 10% above all-time highs at US$56.
Get The News You Want
In addition, the chart shows that we find ourselves in a strong quarter so far, which is in alignment with cyclical probabilities.
Silver weekly chart - prepping the play/h2
Let us return to the weekly time frame for a possible low-risk entry scenario with this target in mind.
We find a supply zone based on fractal transactional volume analysis near the price of US$24.11 and US$22.65. Both attractive entry zones for excellent risk/reward-ratio plays.
It will not be rumors, doubts, and speculations that will be the catalyst for silvers’ success or failure. It isn’t a question of “if,” but just a question of “when” we will see the next massive price advance in this precious metal. The odds are stacked too much in favor of a continued price movement up that the long-term investor should let doubts allow for diverging from a splendid opportunity to partake in wealth preservation and a very profitable way to participate in a chance rarely presented this prominently.
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.