If we look at a very simple 1 year chart for silver, its price has been supported by the 200d MA until August when it bounced off and has been approximating the 14d MA since. If we believe the strong uptrend could continue, we might want to buy in a small position when silver is nearer US$27.00 /oz. That would also be about a 10% pull back from the high of US$30.70 /oz or a 5% pullback from current levels.
UOB Silver Savings Account is now selling silver at S$37.87 /oz. A 5% pull back from current levels would bring it to S$36.00 /oz (not accounting for exchange rate fluctuations).
A correction could allow up to 20% in pull back from the peak. That would approximate US$24.00 /oz. Personally, I see stronger support at that level and because I am already vested in the metal, I am in no hurry to add to my position now. US$24.00/oz or approximately S$32.00 /oz would probably see me buying more.
2 comments:
Hi
What are your thoughts on physical silver vs paper silver?
Ruttger
Hi Ruttger,
As with gold, I have a preference for physical silver. Unfortunately, unlike gold, UOB does not trade physical silver. So, I settled for the next best thing which is the UOB Silver Savings Account.
The advantage of paper gold and silver is that no GST needs to be paid but there is an annual service charge for the UOB Silver Savings Account.
Since I am investing in gold and silver with a view to divest at higher prices in future, the consideration of liquidity is important. No point buying physical silver if it is hard to resell at spot rate later on. :)
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