Silver weekly risk weight confirms end of 9 months consolidation | 14 May 2021


Silver Price Forecast relative to Long Term Monthly - Medium Term Weekly - Short Term Daily - and Hourly (not shown) data.

SILVER FORECAST

(Previous week in brackets)

Silver/USD Monthly Weekly Daily
27.37 (27.40)
Trend ↓ (↓) ↑ (↑) ↓ (↑)
% Risk
Weight
77 (77) 50 (38) 70 (74)
PM Distribution
Total allocation 35% (30%)
Pt:35% Ag:30% Au:35%

Silver/USD live price


Silver comment

14 May 2021 close: We still cannot tell whether Silver will break out of its range versus gold, but the action last week, inflation numbers and comments from officials are looking very good for the PM space. Silver may finally start to break its consolidation against the USD and start its journey towards our next target of $37.00. No Change.

7 May 2021 close: The Silver price, at 27.50, sits in the middle of a consolidation triangle that started 9 months ago. Medium and short term indicators suggest a break north for this intermediate cycle that has much more to prove at significantly higher risk levels than currently shown. Our current allocation is comfortable and large enough at just 30% of total precious metals. Hold.

Quarterly Silver/USD 50 year chart

Silver Q risk analysis

14 May 2021: Same observation as for last week. Silver should develop some strong price advance as this longer cycle timescale unfolds during the next 9 to 12 months.

07 May 2021: The current short term rally shows up in the above chart with a slightly higher risk reading and is pointing strongly up. This should develop some strong price advance as this longer cycle timescale develops during the next 9 to 12 months.


GOLD/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/SILVER Ratio Monthly Weekly Daily
67.05 (66.58)
Trend ↑ (↑) ↑ (↑) ↓ (↓)
% Risk
Weight
8 (8) 49 (49) 25 (25)
PM Distribution
Total allocation 35% (30%)
Pt:35% Ag:30% Au:35%

Gold/Silver Ratio live price


Gold Silver ratio analysis

14 May 2021 close: 2 closes below the channel support at 66.31 is reason to switch some gold and perhaps platinum too into silver again as this current silver rally looks potentially very strong and lead the fresh impulse direction for precious metals. If 62.00 breaks there is no strong technical support until 35 year low of 30.45 in April 2011. Let's see what happens the next few days. Buying a bit of silver and probably no more than a fully balanced portfolio between the three core metals.

7 May 2021 close: The first week of May ended with a 1.5% stronger Silver price relative to gold. Daily risk turned down at lower quartile whilst weekly turned up from being down at the same level. This happens with a lower price if the weekly range that dropped off the 14 week calculation was a serious down week. The picture generally does look sdtronger for silver but with Monthly still in an uptrend at a low risk weight percentage level, this is not a time to go seriously overweight on silver. The relative low risk weight position on the Quarterly chart below also demands a bit of caution although this long term trend is still down. No portfolio change otherwise.

Quarterly Gold/Silver ratio chart since 1971


PLATINUM/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

PLATINUM/SILVER Ratio Monthly Weekly Daily
45.58 (46.30)
Trend ↑ (↑) ↓ (↓) ↓ (↓)
% Risk
Weight
61 (67) 58 (64) 15 (23)
PM Distribution
Total allocation 30% (35%)
Pt:35% Ag:30% Au:35%

Platinum/Silver Daily 14 May

14 May 2021 Daily risk weight was up last week, turned down and then turned up again midweek. Short correction may not be finished. Longer term timescales prevail ay this moment.

7 May 2021 Daily risk weight could consolidate price a little longer and more pressure on the lower volume platinum space may develop if Silver has another strong advance. Future for the short term risk ratio looks still promising.

Platinum/Silver Weekly 14 May

14 May 2021 A sharp correction is underway that could possibly reach a 50% correction following the 1st advance after the long term bottom in Q3 2020. Risk towards a fresh new low for Platinum seems unlikely. Trend however is down hence a possible smaller switch into Silver if the Gold Silver ratio finds new low ground and just to create a totally equal balance between all pm's.

7 May A specualtive trading risk is for weekly to continue down where price may reach the 40 handle. The risk weight down trend however is fairly sharp with a mild price correction thusfar and no reason to increase risk by trading short term.

Platinum/Silver (Interim) Monthly 14 May

14 May 2021 Correction in interim monthly risk weight following price could last into next month but this longer term trend is still up. Some larger fluctuations are quite likely in the next few weeks but Platinum should follow through on its path to historic equilibrium at a much higher ratio.

7 May Monthly risk weight is in a similar position where trend is up with a potential consolidation in the making. Risk weight however is likely to proceed towards the upper risk quartile over the next 6 momnths which be the resulot of an improved platinum/silver ratio.

Platinum/Silver (Interim) Quarterly 14 May

14 May 2021 The current interim quarterly blip is very early in the current cycle an could even last a few months. The Quarterly chart however still needs to finsh to the upside which may involve a spectecular move in favor of Platinum well into 2022.

7 May Interim PT/AG ratio has dropped slightly. Platinum however, being as the heaviest precious metal and underrated commodity, however should continue to build towards its long term equilibrium. The chart remains bullish unless the trend that started in September 2020 breaks. Not impossible but very unlikely looking at historic price behavior. Outllok is for PT/AG to reach at least the 60 level within a few years.



close

Sign-up to our Newsletter

Read our privacy policy for more info.

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

Leave a Reply

Your email address will not be published. Required fields are marked *