Currently there is a huge divergence between the prices of paper silver(~14 per ounce) and actual physical silver (>20$ per ounce). Moreover due to the global pandemic several silver mines are shutting down.
This is a classic situation of high demand for the physical and low supply. If you can't get your hands on physical silver a good trade would be the USLV which is a 3x leverage on SLV (tracks the paper spot price of silver).
The paper price will catch up to the physical price soon, with uslv the gains are amplified.
Technical Indicators:
USLV daily chart (left side)
RSI is reversing from heavily oversold regions as well as the MACD.
Volume has been picking up as well.
Gold/Silver Ratio (right side)
Before most recessions/global uncertainties gold is the safe haven asset. But silver outperforms gold shortly after that.
The gold/silver ratio can be used to evaluate entries and exits for silver. Currently it is over 110 which is a historical high showing very high demand for gold but not for silver.
RSI is overbought and is trending down as well as MACD. These show that money is moving slowly from gold to silver.
Note: This is not financial advise. Please do your own research.
Silver has a lot of upside. Go for USLV for amplified gains.
This is a classic situation of high demand for the physical and low supply. If you can't get your hands on physical silver a good trade would be the USLV which is a 3x leverage on SLV (tracks the paper spot price of silver).
The paper price will catch up to the physical price soon, with uslv the gains are amplified.
Technical Indicators:
USLV daily chart (left side)
RSI is reversing from heavily oversold regions as well as the MACD.
Volume has been picking up as well.
Gold/Silver Ratio (right side)
Before most recessions/global uncertainties gold is the safe haven asset. But silver outperforms gold shortly after that.
The gold/silver ratio can be used to evaluate entries and exits for silver. Currently it is over 110 which is a historical high showing very high demand for gold but not for silver.
RSI is overbought and is trending down as well as MACD. These show that money is moving slowly from gold to silver.
Note: This is not financial advise. Please do your own research.
Silver has a lot of upside. Go for USLV for amplified gains.
