I have been a bull all my life and I will continue to remain a silver bull all my life. But silver has the tendency to fall much faster than any other metal in the event of a bear run. It is this tendency which scares low risk investors away. However silver’s performance in 2010 has a lit a fire in the mind of retail investors that he needs to invest in silver. I am now being asked by a huge amount of people whether they can invest at current prices. A few years ago I used to tell the same people to invest in silver but they ignored my advice.
There have been three major corrections in silver since 2000. I am very sure that the fourth one will happen over the next two years.
It will not be one way traffic for silver. There will be wild swings and consolidation phases.
Silver can rise to $5498 and $8203 as long as it trades over $1774.20 on weekly closing basis.
There is just one silver exchange traded fund. If more silver exchange traded funds come up then silver prices will zoom twenty percent in the short term and forty percent in the medium term to long term.
The risk to my bullish view in silver is that of a reduction in global liquidity and global economic fundamentals.
In the event of a crash in silver I do not foresee silver falling below $1400 in the long term.
As far as long term investment in silver at prices is concerned, I will prefer to wait and invest around $2800 till $2100.
SILVER LONG TERM TECHNICAL LEVELS
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information.Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
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