Silver holds its value

Doubters claim that one of the primary branches of Silver use, photography, by now has diminished to a 2.8% share within Silver’s fundamental value. While that is true, it is overlooked that the use of Silver is expanding rapidly. The research consultancy Metals Focus expects industrial demand to increase to 1.03 billion ounces this year. Close to the record high of 1.07 billion ounces in 2013. Silver holds its value.

With a stagnation of Silver’s supply through mining and recycling over the last twenty years, prices are forced higher by any expansion in new applications of Silver. We see expandable markets for Silver use in water treatment, flexible displays, the pharmaceutical industry, 5G communication, RFID (Radio Frequency Identification Devices), nanotechnology, silver oxide batteries, high-performance engines, functional clothing, and solar technology.

The most decisive influencing factors of the future regarding innovation are:

• Development speed.

• Reduction of size in electronics.

• The increased need for data transfer speed in the communication sector.

Obviously, 5G has nearly scratched the surface in its possibility of offering new markets to hip-pocket to this wireless edge.

Silver in US-Dollar, Monthly Chart, A prosper future:

Silver in US-Dollar, monthly chart as of August 6th, 2021.

These long-term stabilizing factors are already seen in price development for the longer-term investors. A look at the monthly chart reveals a clear direction to the upside. And in our humble opinion, we are only in the infancy of this trend establishment.

In addition to solid fundamentals, we bet on high probabilities, and one aspect is historical pattern repetition. The chart reveals the actual possibilities from the larger picture, where we have a small bullish pattern over the last two years within the larger view framed that supports continuous growth. While wealth preservation is our primary focus, we see quite some potential also for wealth creation in this specific case.

Weekly Chart, Silver in US-Dollar, Treading water but not for long:

Silver in US-Dollar, weekly chart as of August 6th, 2021.

As much as smartphones, TVs, LED Chips, and consumer electronics as a whole will push the demand for Silver forward, in the short term, patience is needed. Market manipulation in the Silver and Gold market and daily allocation rotation between the precious metal sector and Bitcoin, are hedge mechanisms for the larger players. They adjust their bets and time their entries. Consequently, making it cumbersome for the smaller retail players to position themselves. You find support in our free Telegram channel from professional traders who maneuver their different time frame allocations through those rough waters with success.

The weekly chart provides some clarity for this volatile sideways market. We can make out that Silver made a massive first leg up-move (from US$11.64 to US$29.86, a 157% advancement). In the second part of last year, Silver traded in a range from roughly US$22.75 to US$28.25. This year, that range got tightened from US$24.50 to US$28.25. While we established supply zones, we still are within a sideways trading range for over a year now.

Fundamentals and regular trading analysis elude this price behavior. Clearly reflected in an exuberant difference between spot price trading and physical purchase prices for Silver. Markets aren’t clean or scientific, and with prices attacking the US$25 level and still a possibility of a retracement towards the US$23 to US$22 level again, investor sentiment could dwindle.

Nevertheless, we are far from discouraged but are aware that we live in extraordinary times and that patience isn’t just a virtue but, in this case, needed to be part of a wealth preservation strategy that has solid, rooted legs within physical Silver ownership. As such, should prices decline, we would find that a buying opportunity once more.

Gold in US-Dollar, Weekly Chart, Timing, watch for Gold:

Gold in US-Dollar, weekly chart as of August 6th, 2021.

Over the last three months it has become more evident that Gold’s leadership role has a dramatic effect on Silver. Money flow between the two metals and various hedge strategies have had a strong impact. Almost a blockage by Gold stopping Silver’s efforts to run dead in its track. We advise closely watch Gold’s development for entry timing of Silver positions and only when all elements fall into place to pull the trigger. Even the nicest Silver setups seem to dry out quickly if Gold isn’t willing to lead the move.

Some of the most durable minds get weak if you are sitting duck for over a year with a buy and hold/hodl perspective. It is that psychological reason that we have seen too often traders give up and exit a long-term position right before they take off that motivates us to rather position build. We use a quad exit strategy where the last part of a position possibly survives retracements, and throughout a year, many of these runners pile up and build a long-term position that’s risk-free and has the potential to be part of the second leg up.

Silver holds its value

The research consultants from Metals Focus make a reasonable claim. They expect nothing less but a multiplication of Silver demand over the next ten years. Reasons are not just an increase in demand for existing applications of Silver, but an expanding growth rate of new fields of application. We see this in alignment with the principle fact of Silver’s unique and specific properties. Consequently, there are no alternatives of substitution. These unique facts of Silver’s provide the additional fundamental stability that we, as wealth preservers, welcome in our long-term speculation to use Silver as a wealth preservation and wealth creation tool.

Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g

All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.

Important Trading Risks and Earnings Disclaimers - Terms of Use

RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.

NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.

EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.

Terms of Use: Your use of this educational website indicates your acceptance of these disclaimers. In addition, you agree to hold harmless the publisher and instructors personally and collectively for any losses of capital, if any, that may result from the use of the information. In other words, you must make your own decisions, be responsible for your own decisions and trade at your own risk.