The accompanying chart illustrates that silver has yet to breach its first major resistance level between $18 – $18.50. Yet, I find clients and prospective clients reticent to buy or add to their silver position because their perception is that silver has gotten too pricey. When you look at the chart, it could be argued that silver is still downright cheap.
Investors watched silver drop for five years from $49 thru levels they thought would hold, such as $40, $25, $18, and it kept going down. Silver finally bottomed in the $14 range. Then in no time it shot up to $17, a 21% rise, and caught many, if not most, off guard. I can’t tell you how many people I talk to feel as if they “missed” their chance. “Now it’s too late to buy, heavens, I could have bought at $14 just months ago. I’m not buying now!”
If I had asked people 5 years ago if they had a chance to buy silver at $17, would they be interested – most would have said they’d back up the truck. Today U.S. physical silver sales are flat. Investors are not buying at what is near the bottom. That is most often the case – the smart money buys when the masses don’t. Later on the masses help run the market up.
Is this the bottom? Maybe, maybe not. Are we presented with a great deal? Yes, a fantastic deal.
All Things Considered – John’s Commentary:
My wife loves Canadian Silver Maple Leafs – she would encourage you to buy some.
We are now including pricing with each email on the most popular gold and silver items (
Click here).
Please call for up to the minute live quotes.
