Looking at the latest technical chart, it seems that silver has rebounded smartly off the 20dMA. It closed at US$35.25 per ounce. The 20dMA is now at US$34.51 per ounce. UOB now sells silver at S$44.75 per ounce.
In terms of momentum, the MACD looks like it is beginning to turn up. It is still too early to tell if it would successfully cut the signal line on the upside in the week ahead although the histograms look like they are forming a higher low.
For sure, I am not a seller now. I am more interested in buying on weakness. A test of support provided by the 50dMA would be a fairly good proposition and that is currently at US$31.17 per ounce. With the current heightened tension around the world, I would wait and see.
12 comments:
HI AK
Very informative blog. Am also considering getting silver but it seems prices are still a tad high. Deciding if I should go in now..
k
Hi K,
My style is to hedge whenever I am not sure.
When I first bought into silver early last year, some people asked me to wait as they think price might dip. I asked if they were sure it would dip? None could be sure. So, I went ahead and bought some silver then. If I had waited, I would have missed the boat.
The idea is to get a foot in the door first. If price were to dip, I would buy more. That's the way I work. :)
Thanks AK :)
Yea, that's true. Currently I have this AIA IGP policy which consists of global resources fund, emerging mkt. Paper loss of 1.5k thus considering taking it out to get silver or even shares.
regards,
k
Hi k,
I think silver's uptrend is quite easy to see. Buy on dips as long as the uptrend is intact.
As for shares, you have myriad choices. Tread carefully. ;)
The AIA policy sounds like an investment linked policy. I don't like those. I buy insurance for the sake of insurance these days. :)
Thanks AK :)
Yea, it's a lump sum for the AIA. No insurance component. Loss is quite a lot thus thinking of putting the funds to silver or some blue chips.
k
Hi k,
You are welcomed. Good luck. :)
Hi Ak71,
It's me again, Cas.
I would like to get yr opinion on silver investment vs stock.
What would be the risk ratio comparing silver vs stock? Is silver an easier investment to monitor than stock where it will have to report financial result, meet analyst target, business expansion etc that all these factors will somehow affect the shareprice movement. Of course, the other setback is silver does not enjoy any dividend payout like stock.
I m asking this as I m thinking of increasing my exposure in silver.
Thanks
Cas
Hi Cas,
I am also thinking of increasing my exposure to silver. I would like to up my investment in silver to at least 5% of my investment portfolio. When would I do this? Ideally, I would like to buy on weakness.
Is silver investment easier than stock investment? I think both suffer from the same amount of noise. There are also two camps for silver: bears and bulls.
The biggest disadvantage of investing in silver is the lack of cashflow which is important to many people, including myself.
I think a 5% weightage in my total portfolio is pretty safe. It is OK if 5% of my investments do not give me regular income. ;)
Hi AK71,
Thanks for yr reply.
BTW, can u share how to calculate to have 5% of silver investment in the portfolio? Would appreciate if u can give an example for the calculation so that it will be clearer. I m not sure what is my % exposure to silver now.
Thanks
Hi Cas,
Let us say you have set aside $100K for investment purposes. 5% would mean that $5K should be in silver. The rest of the $100K could be in bonds and equities for examples.
JPMorgan applied for license to be a COMEX vault. GOt it approved in 2 days instead of the usual 45 days or so. With just days to the end of this month, there is still more than half the silver standing for delivery. This has never happened before. Most of the delivery takes place in the beginning of each month. Now that JPMorgan is a COMEX vault, they now can "deliver" to THEMSELVES and fulfill their shorts. i.e. JPMorgan has NO silver.
Crash JPMorgan. Buy Silver. and SIlver is not a safe haven. PRices are not rising because of safe haven demand. Prices are rising because silver supply is tight. JPMorgan overplayed their naked silver shorts. This is the end of the game.
Hi Anonymous,
Thank you very much for sharing the very intriguing details. Very fascinating, I must say.
Could you include your name or initials in future comments? :)
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