LastBattle

Silver bullish scenario

FX:XAGUSD   Silver/U.S. Dollar
If you like gold's trajectory/bullish in gold             , the cheaper metal is the one to get. Silver             on its own trades directionless, except that it is tracking the movement of gold             . Similarly this can be seen in other markets such as Bitcoin             , when considering BTC             vs LTC. Except that its in a more extreme manner than the other.
snapshot

Since the last major bubble that peaked at $49 USD it have been severely underperforming Gold             . In my opinion that also creates opportunity, given the fact that Silver             have almost retraced all of its entire rally throughout 2008~2011. It could still go much lower, at $8 a piece however.

US inflation from 2001 to 2015 currently stands at 33.4%. With the price of $4.7 in 2001, at minimum we should never expect a price lower than $6.269.
That is without consideration of the declining yet small supply of silver             along with an increasing demand from industrial uses.
Looking at the cost of producing Silver             alone in 2013, the break even price of miners currently stands at $24.05 with a loss of $9 per ounce sold. That'll add even more pressure to the supply once again as more mines are shut down.

Technicals:
We're approaching the decade long trend-line since the start of 2000, that'll act as a pretty strong support in the coming months to years. $14 is the lowest I expect.
Looking at the price ratio of ( Gold             / Silver             ), is wedging up towards a major resistance at $84 USD.

snapshot

-----------------------------------------------------------------

To sum things up:
Silver             is no longer considered by the average joe as a form of good investment. It is mostly used for industrial purpose, alongside a minority of hard money advocates and bullion buyers who realize its importance as a hedging instrument, a safe haven, or store of value asset.

The market is capitulated, this is the exact bullish scenario the market needs to kick start off another rally when people are caught by surprise.
I'm starting to see potential in owning physical silver             bullion today. (Not paper), and it could be a good long term investment.



Acknowledgements:
http://www.zerohedge.com/news/2015-05-01/jp-morgan-cornering-silver-bullion-market
https://www.silverinstitute.org/site/silver-investment/enduring-value-as-a-precious-metal/
http://www.silverseek.com/commentary/2013-full-year-results-top-primary-miners-real-cost-produce-silver-13222
snapshot


NOTE: Short term looks doomish, given that silver have already tested the resistance back in 2015 January.
+1 Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out