Is it worth investing in silver?

Our chartist has regarded silver with distrust, but it appears something may finally happen.

10th September 2019 09:14

by Alistair Strang from Trends and Targets

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Historically, our chartist has regarded silver with distrust, but it appears something may finally be happening.

Silver (Si) 

As we cower in our homes in the UK, a country where anarchy is expected, thanks to Parliament being suspended and the rule of law ignored, our thoughts turn to precious metals and the need to put something aside for a rainy day.

Historically, we've regarded silver with distrust, but it appears something may finally be happening.

If we're reading the numbers correctly, should silver now exceed just $19.80, we should anticipate growth to an initial $20.5.

Whilst we quickly concede this isn't particularly interesting, in the event of the metal managing to actually close a session above 20.5, continued travel to a secondary of $23 calculates as very probable.

Above this point, it gets a little irrational as there's very little to hinder rapid acceleration to $29.

Worth pointing out is an unpleasant facet of silver.

Historically, price movements against the metal were capable of making bitcoin look like a paragon of ethical behaviour.

Visually, we're fairly happy to project $23 as it makes sense.

As for the potential of acceleration to $29, the visuals hint this is possible but we'd warn, if such a journey happens quickly, it's liable to be reversed even faster.

Our distrust for silver movements obviously adds to our bias but, if collecting for a rainy day, it can be easy to get wet and catch a cold!

The price of this metal needs above $35 before we'd abandon scepticism and hope for the future.

Finally, if it now melts below $17, hope for the immediate future vanishes. However, cheaper silver will doubtless fuel the supply of silver bullets, ensuring werewolves and vampires remain a rarity - at least outside UK politics.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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