Let's hope others will be willing to sell at lower prices in order to bring that lower bottom. Stackers? Paperplayers? Miners? Recyclers? Anyone? It happened in 2008 at $9 so why not now at $15? Hello IShares shareholders, you have 320 Moz silver. Hello anyone holding silver. Will you sell on strength? Or sell on weakness? That's the story behind the Fibonnacci en Eliott mathematics for psychology.
It's all about sentiment, yes? If investors are confident that a better investment is in paper at this time, then sentiment toward metals will be against. That should have the effect, in part at least, of not strengthening gold / silver prices, but weakening them. In a nutshell, is that right?
Is 'sentiment' an applicable word? It has little to do with feelings, more with what people consider the biggest risk in todays situation, dollar, bank account, stocks, bonds, etc, or silver. What is the chance that the dollar will have preserved your buying power over a decade and more? What is the chance that a bank account will? What is the chance that stocks will? What is the chance that bonds will? What is the chance that silver will? Silver at $50 is clearly a bad preservation, not any product can hold a tenfolding in price in a decade with all the rest lagging 100's % on it. Silver at $40 isn't much better. Silver at $30 has some ground (dollars created, economy revival = dollars spent, resulting in general price inflation catching up so $30 holds since the profit in terms of purchasing power shrinks. Silver at $20 appears to me as being a good start position for a next cycle. Silver at $15 is just a bargain. Since I'm a stacker with no near future time horizon to sell, I'm all for bargains. Let 'm come. Better $15 than $30. It adds more ounces. Those that bought silver at a higher price to make a quick buck/free ride, well, bad luck, some others bought and dumped before you. Nevertheless, there's always the chance to not make it worser. Paying too much. Selling for too less. If you follow the frontrunners all the time, you're bound to fail in achieving the goal. I paid too much. Plan? Buy only at new bottom prices. It can never make it worser. We saw $20 very shortly, so that's my next target. No matter whether it takes a month, a year or 3 years. And if it doesnt happen anymore, so what, it means that loss doesn't increase anymore, and instead can get smaller. Sentiment should never be your leader. Instead, have a plan to avoid the risks, and make the better choices based on it.
I know you have rubbished me in the past for suggesting sentiment as a major driving force of markets. But it really is the applicable word. sentiment noun 1. an attitude toward something; regard; opinion. Source: http://dictionary.reference.com/browse/sentiment?s=t
I determine a target price to buy at based on various elements from various markets. When I see that price I buy. I don't care about sentiment / attitudes / whatever other words you give it. Everybody positive, or everybody negative, sentiment, that's something for people that want / need others to make errors, in order to chew out something for nothing. And that's the same I told you in the past, and that you describe here as 'rubbished me'.
Looking at a short term 4 hour tick chart if I connect the support line at 22.50 USD April 15 and then $21.20 USD on May 19, if we were to retest that support line later this month that would be something like $20.30 . There's obviously been an obvious resistance line on the upside since late April. What are the odds we break above it this month? PM's have been pretty ugly for a while. I'd say get ready to test the support again.
