The Silver market is known as one of the most volatile around. Price can move very quickly shooting many traders and investors stops.
Point of control on the daily is $39. The sellers are still in control. Will discuss that later this week on an intraday chart. The support is coming in at 32-34. We are consolidating presently 34 to 34 range and looking for a break out from 35.50 on the top side and 34 on the short side.
If silver breaks to the topside this week and past 36. the next area of asuppor twill be 39 then 42. I would watch for consolidation in this area.
We do have a supporting trend line on the weekly chart that could keep us in this range but if the sellers decide to take out the buyers at this level we could see $27-30 in the short run as the sellers run some stops.
This would take us to the supporting 50MA.
Remember most people were not expecting silver to have so much momentum on the move to $50. The CME’s increase on Margin coupled with this volatile almost capitulatory buying spree at $50 led the sell off in Silver.
Many people are now using their gold holdings to buy into silver at these levels. If they are buying physical, that is great but if they are doing it with ETF’s they could be digging their own grave. Watch out as we will start to see more states charging taxes on silver and gold in order to keep people in paper.
Do buy Silver- buy 5 oz plus a month and hold
Do pay up to 7% over spot for your bullion
Do shop around for bullion; prices are competitive, watch out for sales tax, shipping could cover it.
Do store it yourself; trust a relative before you trust a “Silver Storage Facility”
Beware of long shipping times, store could take your money and run.
Beware of Coin shops shipping over a week.
Never buy silver certificates, futures, or from an MLM. If you get a commission from friends and family, you are ripping them and yourself off.
Never buy leveraged Silver products
Never buy from TV adds
Never buy from Major Trading houses that might have short positions
Never buy coins with numismatic premiums (rare coins)
Never buy silver ETF’s, they are not insured and not audited or auditable.
Never buy a “pool account” of Unallocated Silver – Warehousing companies bankrupt.
Do not buy high premium coins – like silver eagles’ premium price is too high.
Do not follow any ones advice. Do your own research.