Silver reflects the stronger Precious Metals space | 13 November, 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
24.62 (25.57)
Trend ↓ (↓) ↓ (↓) ↑ (↑)
% Risk
Weight
70 (70) 38 (42) 50 (72)
PM Distribution
Total allocation 50% (50%)
Ag:45% Au:35% Pt:20%

Silver/USD live price


13 November:: The entire metals space has experienced a much more stable performance in the second half of 2020 confirming a stronger desire for investors to protect their assets by holding a wider range of Metals including Silver and Platinum. Palladium of course has been the star performer due it is strong industrial electrical market use. Biut where both Silver and Platinum experience strong downward pressure, they are holding their own as indicated by their ratio’s to Gold which are no longer in uptrends but have reversed and looking very much in favor on the cheaper dollar metals. The technical picture from short term to long term time frames looks very similar to Gold. No Change.

06 November:: Silver followed the same advance pattern as Gold and never showed a medium term or Long term overbought condition when it reached the 30 handle back in August. Even though this market can be very tough and volatile at times we confidently stay with the primary trend that can be expected to first develop bearish (lower risk to higher price) divergence in both Medium term and Long term time frames. And that first intermediary potential price top looks to be a long way into the future of the present cycle. No Change.


GOLD/SILVER Ratio Price Risk Analysis

(Previous week in brackets)

GOLD/SILVER Ratio LT-M MT-W ST-D
76.40 (75.93)
Trend ↑ (↑) ↑ (↑) ↓ (↓)
% Risk
Weight
15 (15) 48 (42) 23 (27)
PM Distribution
Total allocation 50% (50%)
Ag:45% Au:35% Pt:20%

Gold/Silver Ratio live price


13 November:: Whilst weekly time frame risk weight is still trending up away from a lower risk Long term, the Gold/Silver ratio held stable in the 76-78 range. This picture confirms the general uptrend in the precious metals space where silver and Platinum will find investor support. If a metal price stops going down it becomes a more attractive speculative proposition. We stick with our long term frame of mind expecting a return to equilibrium. No Change.

06 November:: The Gold/Silver ratio comment made last week still applies. We cannot exclude a final intermdiary blow off top nearer 87.00 which would potentially drive strong bearish divergence between Weekly and Monthly risk weight. As Monthly risk is turning up in this first November week we may need more patience to reach our Gold/Silver equilibrium objectives of 60/65 and 30-40. The 200 month Moving average, which has held since 2013 is now at 65.85. and close to 2 year horizontal support at 64.33. These will be levels to watch once we reach them. No change.



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

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