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Now is the perfect place to stock up on cash and cash investments, expert says

Expert Clive Maund reviews silver’s 4-month and 1-year charts to tell you why he thinks now is a good time to stock up on this precious metal.

Silver has three compelling attributes right now, one is that it is historically very cheap, especially considering the rise in inflation lately. Another is that, like metals in general, it looks poised to enter a robust bull market as the dollar tumbles in a severe bear market.

Arguments as to why the dollar looks set to crash have been laid out in the parallel gold market updatelike the other circumstantial factors favorable to a rise in the price of silver, such as the bullish breakouts in copper and oil, they will therefore not be repeated here.

The third reason is that, as a tangible asset with intrinsic value, silver will retain its value and rise in price like gold as inflation rises in the direction of hyperinflation, and it is more handy than gold for everyday barter in situations where you need to trade something of value to get what you need rather than trying to pass piles of worthless notes.

It is therefore a good place for silver to rise, especially as the dollar looks increasingly vulnerable to a breakdown.

On the latest 4-month chart for silver, we can see the large white candle that formed on strong volume on Friday and pushed the accumulation line up sharply, which is a positive sign.

This move, which coincided with a strong gain in gold and a sharp drop in the dollar, pushed the price up into resistance at the upper boundary of the recent trading range.

On the 1 year silver chart we can see how the price has fallen over the summer. The break of support in the US$22 area was somewhat surprising, but was due to a combination of a sharply rising dollar, shown at the top of this chart, with an upward trend in US rates.

This is a great place to stock up on cash and cash investments.

However, since mid-July price has set a base pattern that is approaching a head and shoulders low or triple bottom, and the duration of this pattern has given time for the moving average 200 days to get closer to the price and for the downward momentum to break down as shown by the MACD indicator, making it more likely that a rally will develop and it should be noted that if such a rally develops following the dollar’s fall from its parabolic uptrend, it could be a scorcher that sheds light on overhead resistance.

On the 5-year chart, we can see why the price found support in the $18 area and based there – this support stems from the massive amount of trading that took place in the $17 area. to USD 19 during the second half of 2019 and early 2020.

It is therefore a good place for silver to rise, especially as the dollar looks increasingly vulnerable to a breakdown.

If silver is near an optimal point to buy then we’d expect big dumb specs to have no point in any of this and that’s exactly what we see on the latest COT chart from silver, which shows net long positions of large specs to be virtually non-existent. . .

The conclusion is clear and simple – this is a great place to stock up on cash and cash investments, many of which have been severely trampled as they are unlikely to remain at these depressed levels for much longer. Disclosures

The foregoing represents the opinion and analysis of Mr. Maund, based on the data available to him, at the time of writing. Mr. Maund’s views are his own and do not constitute a recommendation or an offer to buy or sell any securities. Mr. Maund is an independent analyst who receives no compensation of any kind from the groups, individuals or companies mentioned in his reports. Because trading and investing in all financial markets can involve serious risk of loss, Maund recommends that you consult a qualified investment adviser licensed by the appropriate regulatory bodies in your legal jurisdiction and make your own due diligence and research when doing any type of transaction with financial ramifications. Although he is a qualified and experienced stock market analyst, Clive Maund is not a registered securities adviser. Accordingly, Mr. Maund’s market and stock views may only be construed as a solicitation to buy and sell securities when subject to the prior approval and approval of an advisor. in registered securities operating in accordance with the appropriate regulations in your area of ​​expertise.

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