$50 to $34 took 6 days, being a rate of $2.5 per day. The $40 to $50 took 10 days, being $1 per day. The lower the price, the lower the rate though, so I don't expect a $1 per day from $19 downwards. $1 a week, maybe. To $14 that's 5 weeks, nice timing end september / begin october. Not the first time. With stock markets still on decades highs, a next crisis looks like just around the corner, being the opportunity for those that didn't waste it on every $1 lower.
And here we are, begin october, having seen $21 and now low $17. The futures markets total net position returned to juni levels and with it the forward component inside silvers spot price. With all those that bought silver during the higher price period, paying the dollars that what is named "hedging" delivers. See, the extra that dealers add to the price, is not only what is known as "premium", but also this forward/futures component in the price, achieved by an order that increases the price already upon its creation, but gets cancelled instead of executed. Known as "futures contract". Then, when this orders total reached a bottom, negativism ruling the day and everybody hesitating / waiting for $5 lower, those dealers will back up their trucks on the cash market (real orders), bring back their hedge into place (read price rise doubled), await the next wave suckers err customers, whom they friendly welcome and show all the kinds of silver avail for sale.
Cool, many thanks for the clarification Pirocco, Hopefully next week or months if it is falling further bellow this week lowest price point, then it is the right time to buy some physical precious metals
Hi Pirocco, Based on the RSI movement and this chart below, do you think it is the good time to buy some Silver bullion this week or next ?
I don't care much about specific charts / focuses. I try to look at the whole of the things, in both scope and period. There isn't a crisis / big concern going on now. The question at this time isn't this week or next but this decade or next, haha. IF you talk here about stacking - what I see as saving in silver, for an unspecified future. I saved most at the peaks (averages, ex $32-30 in 2011) and that was a clear lose-forever story. My opinion is that there is no such hurry to buy precious metals. During the 1980-2000 there wasn't either. Two decades to pick out lows. I think that the next decade low sits around $10 (important - at todays $ purchasing power, and as a short lasting bottom). Quite some elements are pointing towards a looming major crisis on the short term. Decades high stock markets. In recent weeks positive economical stories all over the place. Could very well be this month. Something to keep an eye on: http://finviz.com/futures_charts.ashx?t=ES&p=m1 The peak now is nearly the double of the 2008 peak. The downwards side tends the be its mirror. The 2008 bottom was a decades record. Probably not repeated (ppl tend to learn from costly mistakes so they probably won't bargain-sell their stocks now). But even a halving would still end above the decades average. There is no reason for any speculated upon thing to differ. The run to "dry powder" from the "cash is king" - doctrine. Probably tamed abit by the central planning, by waving fake red flags above banks. Remember, a crisis shouldn't be seen as an end of the world as many suggest, but an opportunity for those that are aware of its why and stay
Silver is just a hidey hole that you hope the marauding vikings won't find when your village is attacked. They will steal all your visible chattels - your pots, tools, livestock and food, but you hope that, after the plundering has stopped, they get back on their longship and bugger off. Then, you can emerge from the woods and dig it up again, to buy food and see you through the hard times. Did the Vikings' victims care if their hidden stash was worth more when they dug it up? No, because that wasn't its purpose. It was an early form of insurance. I see silver and gold as a form of insurance - a safety net or a way of mitigating risk. If it appreciates in value, that's a bonus.
The vikings I fear most gather in Canberra to plan their raids. Their pens are mightier than their swords and can even destroy the value of hoarded currency, let alone paper investments. I'm with SteveS on insurance.
I believe it will be very hard for them to increase the rate. The election, along with what is happening overseas right now...I think, even a fractional increase will send the markets south. I just don't see Silver staying up 350% (which is where it's at right now) from only 13 or 14 years ago. I think it's overvalued at $15+
Pirocco, Many thanks for the comments and the sharing from the stock market point of view. I've just started to accummulate PMs since August this year and now I must wait myself before taking another loss, so hopefully this upcoming important dates from USA can drives PM further down a little bit for the opportunity to accumulate more physical bullions.
Yes, that's what I'm thinking as well. But who knows, if somehow D. Trump is won the election, as predicted by many traders think then this could be bullish for Gold & Silver. So if the chart below is right, Trump Wins which makes it great opportunity to buy after those dates marked.
Peter and SteveS, Yes, the idea of accumulating precious metals was sparked by reading Jim Rickards book which I wish that I had known already since December last year (2015). But yes, according to his suggestion, it is better to buy PMs up to 10% of your total asset and then think of it as your financial insurance for the next decades, or even inheritance for your childrens.
