Silver Investing Strategy / Commodities / Gold & Silver 2020
Firstly, my long standing approach to Silver has been one of buying (accumulating) when the Silver price is cheap to invest to capitalise on long-term Spikes, as the silver price tends to be quite erratic in behaviour, prone to a lot of false signals so Silver can be a difficult market to trade i.e. tends to run stops and sharp movements contrary to the likes of Gold, just as we experienced during Summer 2019, with the bulk of the silver moves taking place towards the end of precious metals bull runs as illustrated by my analysis of May 2018 investing for a $35+ Spike.
Silver Forecast 2018 and Beyond, Investing for the $35+ Price Spike!
In terms of a Silver market position then as is currently the case the silver market can usually be expected to be a dead market with the tendency to flat line not just for many months but even years as it tends to play second fiddle to Gold in terms of tradable swings, usually only really coming alive towards the latter stages of precious metal bull markets.
Which remains my long-term target for a Spike to +$35, at which point I would likely be distributing (selling) holdings as usually investors only have a short window to sell before the spikes come and gone. Anyway the basic principle is to buy when cheap (which for me is a sub $15), and sell when it spikes which for me would be for around $38. I don't really care if it goes all the way to $50 and beyond as 170% profit for a 5 year investment is good enough expected return for me.
This year we had a crash lower to under $12! But no I did not buy any this time around because:
a. I already hold Silver (SLV).
b. My focus was on loading up on AI stocks for the KEY mega-trend of our times that will change EVERYTHING!
c. Silver is a side show, but for some reason many people want to know what Silver will do next. I would put far more importance on likes of Microsoft, Amazon, AMD or IBM than SIlver. Usually Silver is not on my radar. .
The whole of this extensive analysis that concludes in a detailed trend forecast for the Silver price was first made available to Patrons who support my work: UK and US Corona Catastrophe Trend Analysis, Stock Market State and Silver Price Trend Forecast Summer 2020
UK Corona Catastrophe Trend AnalysisFEEDING THE INFLATION MEGA-TREND US Corona Catastrophe Trend AnalysisThe Corona Riots of 2020 Have Begun!Stock Markets Failing to Give Another AI Mega-trend Buying OpportunitySilver vs Gold TrendGold Silver RatioSilver Long-term Trend AnalysisSilver Trend AnalysisFormulating a Trend ForecastSilver Price Trend Forecast ConclusionSo for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.
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Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.
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