Silver holds the 21.15 level | 27 November


Silver Price Forecast relative to
Long Term Monthly (LT-M) - Medium Term Weekly (MT-W) - Short Term Daily (ST-D) - and Hourly (not shown) data.

SILVER FORECAST

(Previous week in brackets)

Silver/USD LT-M MT-W ST-D
22.68 (24.10)
Trend ↓ (↓) ↑ (↓) ↓ (↓)
% Risk
Weight
68 (70) 30 (40) 12 (36)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Silver/USD live price


27 November:: The past years would have triggered an unprecedented negative reaction in the silver price as gold got hammered. Not anymore. Even though silver had a worse week, certainly it wasn't dramatic relative to Gold. We expect silver to hold the 21.15 support level. Our additional allocation from cash into physical Platinum last week dropped our silver allocation within the precious metals space from 45 to 40%. No change to staying fully committed to Silver for long term monetary safety.

20 November:: Long Term Silver is making an interim correction without having shown a true overbought level. Weekly risk trend seeks to turn up at the 40 level but not decisively. Daily still in downtrend with price leveling out in a narrowing wedge which started with a strong upward breakout in July at the $20 handle. Primary focus is long term where silver is expected to offer both wealth protection and price opportunity. No Change.


GOLD/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/SILVER Ratio LT-M MT-W ST-D
78.77 (77.16)
Trend ↑ (↑) ↑ (↓) ↑ (↑)
% Risk
Weight
16 (15) 50 (47) 68 (32)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Gold/Silver Ratio live price


27 November:: All risk weight trends are up at this moment with a good possibility of developing bearish divergence between short and long term risk. Silver weakness drove the Gold/Silver ratio higher as expected, but not as violently as in previous years. We could still see a further rally towards the 90 level, but this potential will becomes less if Gold and Silver find a near term bottom. Our Silver allocation is built on the expectation that the Gold/Silver ratio will move towards its long term equilibrium somewhere between 20 and 60 within the next few years. A stronger monetary benefit should be the result from this wealth prerservation strategy.

20 November:: With Weekly risk weight turning down midway symbolises the technical struggle to reach long awaited equilibrium in the Gold Silver ratio. Even though a full correction from the 60 point drop could take the ratio back up to the 90 level, there is no historic technical evidence to assume that an intermdiate or longer term bottom has been reached. Quite the opposite. A long term bottom appears further away as we progress towards that long term equilibrium in the 30-60 range. This Gold Silver ratio technical behavipr confirms our current portfolio distribution preference. No Change.



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Posted in A - All Financial Blogs | 2021 Forecast, SILVER FORECAST 2021 | EYEFORGOLD.

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