Breaking News
Investing Pro 0
Final hours: unlock premium data with Claim 60% OFF

Is Now a Good Time To Buy Silver or Gold?

By Michele SchneiderCommoditiesDec 04, 2022 11:33PM ET
www.investing.com/analysis/is-now-a-good-time-to-buy-silver-or-gold-200633105
Is Now a Good Time To Buy Silver or Gold?
By Michele Schneider   |  Dec 04, 2022 11:33PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
Gold
-1.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Silver
-3.20%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

While investor sentiment continues to be tugged and pulled, precious metals continue climbing.

SLV Daily Chart
SLV Daily Chart

Silver is forecast to lead gold prices higher. We like both yellow metal and white metal. We are long in both and have taken profits along the way.

Silver ended the week at $21.29 after bottoming around $16.00 in September.

Silver crossed over the 200-day moving average and crossed above the Bollinger bands after a 17% run in November.

With inflation remaining on the long-term horizon, silver and gold are poised to continue to increase in value.

Here are some ideas on how to inflation-proof your trading.

SLV Weekly Chart
SLV Weekly Chart

When analyzing the trend or a trade-in gold (GLD), it's a good idea to look at Silver (SLV) because these precious metals tend to be more reliable when they are in sync.

On the weekly chart above focusing on SLV, our proprietary Real Motion Indicator displays that Silver's price can continue higher. SLV is above the Bollinger Bands, so might indicate potential consolidation.

Our Triple Play Indicator also exhibits strong leadership performance relative to S&P 500, indicating silver should continue further leadership.

Last week, softer CPE came in, and the US Dollar declined. On Friday, the ISM manufacturing index fell sharply and employment data showed 263,000 new jobs were added.

The employment report is another illustration of why the Fed will fight inflation for much longer than most people anticipate. The Fed's continued tightening could eventually lead to a recession or, worse.

That's why investing in assets that appreciate faster than inflation is necessary. Silver is a valuable resource that should be on every investor's radar.

Here are two reasons to hold silver.

  1. The gold to silver ratio

The ratio measures the amount of silver it takes to buy one ounce of gold to silver. The gold to silver ratio is about the same as in 1980, so silver is incredibly cheap compared to Gold.

  1. Demand: India; Stored silver in London

More than a third of India's silver consumption is for jewelry, with the remaining going to the industrial sector, silverware, and photovoltaics.

Demand is robust and imports of silver are almost back to a previous high of 9,000 tons in 2015.

SLV Imports By India
SLV Imports By India

In the UK, data representing the volume of silver held in London custodian vaults in October 2022 were 26,502 tons valued at $16.3 billion, or 883,417 silver bars.

This is the lowest amount of silver held in the vaults since reporting started in July 2016.

This same precious metal can help you protect your portfolio during turbulent times.

ETF Summary

S&P 500 (SPY) 402 is support and resistance at 409

Russell 2000 (IWM) 185 support; 191 resistance

Dow (DIA) 341 support; 348 support

Nasdaq (QQQ) 289 support; resistance 296

KRE (Regional Banks) 62 support; 66 resistance

SMH (Semiconductors) 221 support; 226 resistance

IYT (Transportation) 228 support and resistance at 234.

IBB (Biotechnology) 135 support and 141 resistance

XRT (Retail) 63 support; 70 resistance

Is Now a Good Time To Buy Silver or Gold?
 

Related Articles

Phil Flynn
The Energy Report: 9 Lives By Phil Flynn - Dec 08, 2023 1

Even a dead cat can bounce occasionally, with apologies to cat lovers. After an almost record-breaking string of 7 weekly losses, oil prices are trying to find support ahead of the...

Is Now a Good Time To Buy Silver or Gold?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email