Silver market also resists a bit of punishment
17 December 2021 close: The midweek Silver punishment fed through to the other metals, Gold, Platinum and Palladium. Palladium sold off hardest and also gave a very strong oversold buy signal in literally all time intervals, short to long. Silver also showed deep oversold risk weight and as it lifted off the Wednesaday lows developed a clear bullish divergence in the Daily time frame. The technical picture still supports, and maybe more so today than in recent months, that we MUST hold on to our physical precious metals portfolio where Silver should be shining as industrial demand develops further. Even though quarterly risk isnot giving shorter term direction being in a neutral downtrend, the monthly time interval has used the enture correction to develop a low risk pattern and at a near pivot point turning up again. No Portfolio Change.
03 December 2021 close: The good thing about crypto is that we are rapidly getting used to dealing with strongly fluctuating assets. And the good thing about silver is that its price does not yet reflect the kind of industrial demand that lies ahead in electrification of things or any device that needs protection against oxidation and corrosion. Gold, Platinum and Palladium might be better solutions for high-end industrial products of the same but Silver is relatively (dirt) cheap. This is besides the technical picture which remains positive long term as we have yet to reach the minimum requirement of technical price exhaustion. Our preferred tools haven't show any of that since the super cycle trend resumed in 2015. No Change to our slight overweight silver allocation.
Silver/USD Risk Weight Position relative to Quarterly, Monthly, Weekly and Daily risk weight data(Previous update in brackets)
|Trend||↓ (↓)||↓ (↓)||↑ (↑)|
|% Risk Weight||20 (20)||30 (40)||35 (7)|
|Total PM Portfolio allocation 40% (40%) breakdown:||Au:12%||Ag:14%||Pt:14%|