Sol Palha: Financial & Economic Insights SLV Stock Price Today: The New Precious Metals Bull?

SLV Stock Price Today: The New Precious Metals Bull?

SLV Stock Price Today: Are Precious Metals In Trouble

SLV Stock Price Today: Are Precious Metals In Trouble

Gold has rallied to new highs in the Euro, and it continues to defy the dollar; instead of pulling back, it continues to put in higher lows, a very long-term bullish pattern. It has also just closed above $1175 on a weekly basis and has thus set the base for a test of its old highs. The entire precious metal’s sector appears to be sensing some sort of future disaster for it simply refuses to correct strongly even in the face of a very strong dollar. Continuous Strength in the precious metal’s sector; a harbinger of bad times…….. Maybe, so if you have no position in the precious metal’s sector, use pullbacks to open up a position.

If you already have positions, then use strong pullbacks to add to them.  A major currency crisis is going to strike, it’s just a matter of time and precious metals thrive in such condition.  On the same token, remember that Wall Street is full of graves of those who were right, but did not have the staying power.  Timing is everything and that is why we always state that one should never overload on any position and this money we are deploying into precious metals is from the profit we locked in when we sold Gold almost at the top in 2011.

US Dollar Gaining Traction

The dollar has just rallied to a new 11-month high and will soon put in a new 52-week high; in contrast, Gold has refused to trade below its Feb 5 low of 1045. In Feb 2010 the Dollar was trading much lower and so by logic Gold should have easily dipped below its Feb 2010 lows, instead, we find that Gold is just a hop and skip away from testing its old highs.

Gold has now put in new highs in all major currencies.   The strongest out of the bunch has been Palladium, which went on to put in a series of new highs in the face of a rising dollar.  These extreme divergences indicate that the precious metal’s market is sensing another crisis in the not too distant future; our guess would be another currency crisis.

Obviously, the best hedge against a currency crisis and an inflationary environment is physical bullion. ETF players can purchase SLV, GLD, CUT, GDX, PALL, etc.  Don’t focus on  SLV Stock Price Today, but focus on its long term trend. The best time to get into any investment is to buy when the masses are nervous and vice versa

SLV Stock Price Today Update

SLV iShares Silver Trust daily Stock Chart

A monthly close above 15.50 should lead to a test of the 18.00  to 21 ranges with a strong chance of overshooting to the 24.00 ranges. Those looking for more leverage could get into leveraged ETFs such as USLV and AGQ.

SLV Stock Price Update June 23, 2020

SLV iShares Silver Trust monthly Stock Chart

Looking at the yearly chart (each bar represents one month’s worth of data) one can see that SLV is still trading in the extremely oversold ranges. Moreover, it is trading in a very wide channel formation and once it breaks out of this channel formation, the move upward will be explosive in nature. A monthly close above 18.00 should lead to a test of the 24.00 to 25.50 ranges with a possible overshoot to the 29 to 30.00 ranges. When 24.00 is tested we will re-evaluate the outlook and determine if SLV is in a position to take out its old highs

Gold and silver updated  Aug 2020

Notice that the dollar on the weekly charts is now trading in the extremely oversold ranges, so a relief rally is due. The dollar is still consolidating on the monthly charts, so this rally is likely to fail and could result in a test of the 90 ranges. Long term the dollar will dominate and here’s is level 4 reason: AI is going to become such a powerful commodity, and as the US controls most of the Top AI players, the US economy and the stock market could expand so much so, that its current debt could/will appear insignificant. The US has two massive advantages right now; the worlds reserve currency and almost total domination in AI and AI-related technologies.  And there is a third advantage; it has the world’s strongest military.

Slv stock price is based on US strength

Gold ended the month decisively above its old all-time highs. Gold is now in a new bull market. Before you jump in joy, understand that this does not imply that Gold will skyrocket from these levels.  Gold is likely to test the 1990 to 2100 ranges before experiencing a reasonably sharp pullback. This pullback should be embraced if you are Gold bug or hard money fan.  Market Update July 31, 2020

For those asking for us to issue targets for Gold; we did so in the last update and Gold has traded within the stated range; it could trade to the 2100 ranges and maybe overshoot a bit more, but it’s probably getting ready to let out some steam. Gold and most of the precious metals sector is now in a new bull market, so sharp pullbacks should be embraced. Hence if you have a significant position in Gold, banking some profits over the next few days to few weeks might not be a bad idea.  Silver is still not in a new bull market; it will only enter a new bull market when it takes out its old highs. As it has to play catch up, we suspect that the next leg up will lead to a fast and furious move.

Our precious metal’s dealer of choice is listed here

Other articles of Interest:

The Ulterior Motive behind the Greek bailout (May 3)

Roast the PIIGS, and End the Euro Crisis (April 30)

SWC; a compelling Palladium Investment (April 29)

Gold, Silver, Palladium: True Bull Market (April 28)

Bonds nowhere to go but Down (April 21)

Dollar, Gold and Silver (April 20)

Anatomy of a Housing Crisis (April 16)

The Engineering of A Financial Crisis

The Art of becoming a better Investor

The Fannie May and Freddie Mac debacle (March 29)

Introduction to Mass Psychology

Crowd Psychology and Markets