Silver is in a bull market | 24 Dec, 2020


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
25.80 (25.75)
Trend ↓ (↓) ↑ (↑) ↓ (↑)
% Risk
Weight
68 (68) 52 (40) 56 (91)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Silver/USD live price


Silver comment

24 December: The unchanged weekly close just before Christmas with all timescales in fairly neutral risk weight is a positive signal. We had a slight preview last week of what's coming when silver rallied sharply above the 27.00 handle before dropping nearly 10% again. Because Silver is a higher volume speculative commodity we may expect a sharp rally into the higher 30's followed by a sharp correction based on potential medium term bearish divergence in Weekly timescale. A 40% advance from present levels is an objective we have held for some time and it looks this market is building up for just that. No Change.

18 December: Silver had one of its best weeks and months with an 8% uptick just last week. A few closes above 26.00 turns Silver into a very strong asset towards our next objective of 37.00. Technically this market requires a fairly strong early advance to turn the Monthly risk trend from down to up, which would be a very strong signal. Physical Silver remains our slight overweight allocation in Precious metals. No change.


GOLD/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/SILVER Ratio LT-M MT-W ST-D
72.80 (72.65)
Trend ↓ (↓) ↓ (↓) ↑ (↓)
% Risk
Weight
14 (14) 26 (35) 40 (7)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Gold/Silver Ratio live price


Gold Silver analysis

24 December: The Gold/Silver ratio briefly dropped below 70 again, since the earlier drop during September, as Silver enjoyed a very sharp rally early last week. We strongly hold on to our long term forecast to at least reach a more modern times equilibrium between 40 and 60 and with both higher gold and silver prices against all major fiat currencies.

18 December: Gold silver ratio obviously followed the strong advance of the silver price and dropped 5% whilst gold rallied about 3% during the week. Weekly risk weight confirmed the downtrend that was reinititated the previous week. Our long term objective remains somewhere between 40 and 60, but this may take time. Last week's Precious metals performance is a positive sounding for wealth preservation investors. Patience is the name of the game now and more speculative investments like crypto and high end equities should only be applied with funds that one can afford to lose, simply because they are high risk technically even though those markets can double and triple again, just like Dutch Tulip bulbs did in the 17th century. No change.



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

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