Silver: No change to fully invested in 2022
25 February 2022 close: Silver/USD after 5 weeks is unchanged after a 9% drop into longer term horizontal support and the subsequent recovery into last Thursday. Silver was heavily bid towards 25,60 before dropping sharply and finishing the week at 24.19. The move on Thursday briefly broke the one year resistance line ($25.17) before the subsequent correction into the weekend. The Silver chart picture is broadly similar to Gold with long term risk weight in uptrends and plenty of room to advance and daily in short term correction. We remain fully committed to our Silver allocation with a slight overweight vis a vis gold. No Change.
21 January 2022 close: Silver has rallied some 4% in 2022. We have brought our Silver Platinum ratio allocation back to 50/50 which is just a minor adjustment in favor of Silver. For a long time, we have been figuring the Silver/USD floor being around $21 within the wider price consolidation that started in Q2 2020. If the price holds, which we believe is now a strong possiblity because Long term Monthly risk weight (22%) has turned positive from being trend down at year end 2021, the initial price target is still between $35 and $40. Silver needs to break $25.70 for 2 or 3 consecutive daily closings to start that next move, in our opinion. With daily risk weight being in overbought risk territory and mildly flat or even turning down we could see some consolidation before the longer term rally continues. Otherwise no change to long 'hold'
Silver/USD Risk Weight Position relative to Quarterly, Monthly, Weekly and Daily risk weight data(Previous update in brackets)
|Trend||↑ (↑)||↑ (↑)||↓ (↓)|
|% Risk Weight||22 (22)||52 (40)||73 (88)|
|Total PM Portfolio allocation 50% (40%) breakdown:||Au:12%||Ag:14%||Pt:14%|