Silver, it's only the beginning | 18 Dec


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
25.75 (23.86)
↑ 7.9%
Trend ↓ (↓) ↑ (↑) ↑ (↓)
% Risk
Weight
68 (63) 40 (30) 91 (65)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Silver/USD live price


Silver comment

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.

11 December: Just like Gold/USD, The Medium term Weekly Silver risk trend turned up whilst the Long term Monthly downtrend became more neutral. This is generally a positive sign, but anyhting can happen short term. The critically important observartion is that we have, as commented before, not seen any bearish price to risk divergence in the Medium term and Long term time frames. This means that technical risk to hold Silver longer term is low, whilst holding physical Silver in uncertain times is as important. No change to the general outlook and we recommend a slight overweight of Silver in the Precious Metals total stock.


GOLD/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/SILVER Ratio LT-M MT-W ST-D
72.65 (76.50)
Trend ↓ (↑) ↓ (↓) ↓ (↑)
% Risk
Weight
14 (15) 35 (47) 7 (26)
PM Distribution
Total allocation 55% (50%)
Ag:40% Au:30% Pt:30%

Gold/Silver Ratio live price


Gold Silver analysis

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.

11 December: The Gold Silver ratio has a mixed technical balance and could be seeking another intermediate top nearer 90 before taking another dive towards equilibrium. With Daily and Monthly risk turning up from down and Weekly turning down from up, the short term direction is anyone's guess. But even though Long term Monthly risk is in oversold territory, we must first see a bullish divergence in one of the longer term time frames. That means a significant price move downward over a longer period of time. This results in a continued hold in favor of silver in te precious metals space. price objective 50-60.



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

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