This chart is of iShares silver ETF which almost follows silver price. As we can see, $18 is the most imp strong horizontal trendline(Blue). Safe strategy to make a fortune in silver: wait for 6 months to see if $18 level holds. then gradual buying can be done spread over at least an year. For a high safety margin, buy when uptrend is restored. When the prices rise, the resistance for rising silver prices will come from trendline at $ 25(red). Its wise to buy silver only when it remains above $25 for at least 3 months.
Thus the imp points to note are:
1. Silver can remain rangebound between these two trendlines for 1 to 2 years.
2. If medium to short term gains are expected, buy only if the price remains above $25 for 3 months. That may take an year to 2 years.
3. Primary trend is up, so any investment done now or in near future will have good returns in around 5 years.
Click on image below to view full size.
Charts courtesy: Yahoo finance.
Thus the imp points to note are:
1. Silver can remain rangebound between these two trendlines for 1 to 2 years.
2. If medium to short term gains are expected, buy only if the price remains above $25 for 3 months. That may take an year to 2 years.
3. Primary trend is up, so any investment done now or in near future will have good returns in around 5 years.
Click on image below to view full size.
Similar patterns have been seen in stock price movement. For example see the price movement from 1996 to 2008 for stock of Berkshire Hathway on New York stock exchange. This is the company owned by Warren Buffet. Simila pattern is seen in silver from 2007 to 2013. After 2008, the company stock soared above the previous peak of $100 and today it is around $110. Thus we will see silver crossing its all time high in 5 to 8 years approximately. The patience will pay off for early investors.
Charts courtesy: Yahoo finance.
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