Buy Silver now – here’s why. As I write, the silver price is at $30.22 per ounce. Silver is an great buy right now. Let me show you why:
Silver has plunged below its 20/50/150/200 day moving averages.
The gold/silver ratio (the amount of silver it takes to buy 1 ounce of gold) is approaching its most recent high which signifies that silver is significantly undervalued relative to gold.
This is likely a capitulation drop, meaning that the weak hands have, or are, throwing in the towel. The holders of silver paper products such as futures contracts, options and ETF’s are those jumping ship. On the other hand, the physical metal holders are all buying and NONE of them are selling.
Silver hit a high of $35.44 on October 1st, 2012. At this moment it is trading more than $5 or almost $15% lower – a significant savings. Strong support is at approximately $27.00.
Buy a portion of silver at this price point (in that prices may or may not go lower). Then if the price drops further, make a secondary buy. Minimize your risk of missing this buying opportunity. I will always counsel my clients to “dollar cost average” by buying in incremental amounts over various price points.
Don’t try to squeeze the last bit of juice out of the lemon. The danger lies in waiting for the bottom support – we may or may not reach it. But when silver again surpasses $35 and goes higher, you will wish you had purchased at this price point if you chose to wait.
All Things Considered – John’s Commentary
Silver is the buy today and here are my two recommendations:
1. 1 oz. silver rounds – the lowest premium form of .999 fine pure silver
2. 1 oz. silver Maple Leafs
