When we last posted on this, James H sagely commented that silver is a stacked game, only for the brave. Right on cue, something odd is happening - silver has lurched into backwardation.I don't rule out for a minute that hanky-panky is afoot, which is reason enough for great caution. Nevertheless, for myself, I am still taking this as a buying opportunity: I'll let you know my average buy-in price in due course.
My reasoning ? Purely MHO, but I take the view that (a) strategically, there is probably a decent floor (Chinese at al diversifying) and (b) technically, I'd generally interpret backwardation as a signal of near-term shortage - though admittedly it has been coupled with spot-price softening in both gold and (to a lesser extent) silver itself.
So - a potential danger-signal for sure, but personally it suits me OK at the minute (see the 2011 predictions).
ND
5 comments:
You might want to check out this blog for info on the GSR, http://biiwii.blogspot.com/
Gary does a lot of technical analysis for the lovers of squiggly charts.
Where can you buy silver, other than second hand and who is selling, without paying VAT?
Anon - well ND does not approve but there are some ETF funds that do actually hold Silver. By the standards of ETF's I reckon these are pretty secure.
anon - you might want to take a look at www.bullionvault.com who do physical silver & gold
but as stated before, that isn't a recommendation, nor are they advertisers of ours ... read their extensive small print & DYODD
Nevertheless, for myself, I am still taking this as a buying opportunity ...
Oh, no doubt of it. If you can predict the moves of the major silver traders, you can ride on that in the short term.
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