Silver on Christmas gift list
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
It isn’t only an excellent gift for your loved ones but also for yourself. We find physical silver especially attractive this Christmas because the loaded spring is fundamentally in the market that supports grabbing a few ounces of coins. Not only, it is a statement of gifting value in a time of inflation, but you are giving a gift that appreciates. In our opinion, that jump in value is highly likely to be in 2022. It seems, no matter where the Federal Reserve will steer its course, silver can only come out ahead. It also seems the FED is forced to act soon and will. You will buy something cheap, and those gifted will be astounded about your foresight and their benefits. Silver on Christmas gift list.
Monthly chart, Silver in US-Dollar, favorable timing:
Silver in US-Dollar, monthly chart as of November 26th, 2021.
Timing for a physical acquisition is in alignment as well. The monthly chart shows a high likelihood for November’s candle closing as an inverted hammer. Consequently, it provides for silver prices approaching the low end of the last 17-month sideways range near US$22. The white line assumes a potential price projection for 2022.
Even if we are wrong with our assessment, a gift of silver for a long-term horizon is highly likely to appreciate from momentary levels to a much higher price target.
Silver in US-Dollar, weekly chart, silver on Christmas gift list:
Silver in US-Dollar, weekly chart as of November 26th, 2021.
The value of a gift like this doesn’t stop there. Numismatics provides for children and teenagers a way to study history. Beautiful coins and bars inspire us to hold on to value for future times and encourage saving.
The weekly silver chart shows in a bit more detail possible price expansion from a time perspective. This would be our most conservative picture of the future. The green bordered box is an entry zone for a potential reversal to the upside. With a high likelihood of an interest rate change by the Federal Reserve Bank in the second quarter of 2022, the inner yellow curve supersedes in probability for the expected time frame for a price increase.
Silver in US-Dollar, daily chart, physical only, spot to risky:
Silver in US-Dollar, daily chart as of November 26th, 2021.
If you look at the daily chart above, you will find that we have seen a swift downward move in the past. Under our beauty principle, there is a good likelihood that this might occur again. If so, reaction times are much longer with a physical purchase than with spot price trading. Meaning there is no need to precision trade (precision purchase) physical silver, but be not spooked if a swift, extended decline might happen. Consequently, we are pointing this purchase out for physical acquisition only but do not advise taking a spot price position based on the risk.
Phase 1 drilling program at Guigui discovered not only the largest intrusive ever found in the district, but it’s the first mineralized skarn ever seen in Guigui!