Check Silver Price Today
Latest Silver Price News
The conclusion to be drawn is respect for the trend, clearly down. Where we have shown a positive “spin” on the character of price behavior at the current lows, that is still where price is, at the lows. One can not be bullish here by any stretch of the imagination. As to buying physical silver, we are likely looking at a price level that will not be revisited in the next few generations. Price may still go lower, to some degree, but what the Federal Reserve is doing to destroy the fiat currency and the economy makes asking the question of to buy physical or not a superfluous one.
Those who are buying, accumulating, and personally holding physical gold and silver stand the best chance for economic survival when and as the US “dollar” is devalued and the financial system collapses, or undergoes dramatic change.
The short term trend is confirming the longer term downtrend. The daily charts show an almost perfect trendline since November 2012. Apart from the trendline, the daily charts reveal two other important things. First, both gold and silver are about to retest their June lows. Needless to say those price points are of major importance. In case they would hold, it could turn out to be very bullish for the metals. However, if support would fail, the odds favour a break through.
However important underlying fundamentals are, in terms of supply v demand, they have been and continue to be of little to no use in determining when reality will reenter the market. When that happens, price will adjust and reflect the true picture of gold and silver’s record [demand] accumulation. All that matters for now is the political situation involving the moneychangers and their puppet government regimes giving them cover during the end game of their world-wide theft.
As a bull on both gold and silver I do expect that this sector will shine once again, hopefully in the not too distant future. However we are still of the opinion that this gold bull market remains in a bear phase for now. The timing of market directional changes is critical to the success of any investment. We all know that it is impossible to pick the very top or the very bottom of the market and so enter and exit the market with absolute perfection. That just does not happen, but it is incumbent on us to try and get as close as possible to these turning points in order to maximise our profits.
How to look at the trend in the price of Silver?
People who have been following the gold and silver markets since the start of the bull market in 2001 know that both precious metals have had incredible price increases. In particular the silver price has gone from $4 to $49 at its peak in 2011. The price of silver has decreased significantly since then. It is currently trading 50% off its peak. There are some underlying economic drivers that need to be considered in order to understand this trend.
Why is the silver price going down while a lot of analysts write that the value of silver is rising?
First, the silver price is closely related to the gold price. It just reacts in a leveraged way.
Second, the precious metals are the perfect hedge against the destructive monetary policies of the central banks. The key issue at this moment is that deflationary forces are prevailing. That could sound strange because monetary policies are highly inflationary. Nothing is further from the truth anno 2013; the economy has been in deflation since 2008 but artificial inflation as an opposing force has been working simultaneously. The most likely outcome is first deflation then inflation. The price of gold and silver should decrease less than other prices during deflation, but much more during inflation.
That is the explanation for the disconnect between silver as an investable commodity and silver as a hedge against monetary destruction.
By following the articles on our site you can stay on top of all unfolding trends and market developments. With our years of extensive experience in understanding trends, as well as our extended network of industry experts, we can offer everything you need in order to stay on top.
Last update: May 2013