When come to investing silver, are you making money from silver or are you losing money in silver? Many people wish to make money from silver market but unfortunately most people are losing money. Sad, but it’s true.
Take a look at this chart:
This chart shows silver price is on downtrend since 28th April 2011 at $48.70 down to $26. If a silver investor has enter the market anytime in within this period, we could safely tell he is either not making money or losing money.
When this happens, most silver investors start to lose confidence in silver, some even give up on silver. They lose hope and probably thinking silver is not such a good deal after all. This is clearly observed in the market. When silver price is on the uptrend, more people are participating in forums, Facebook group pages, seminars, bullion dealers transaction etc. When silver price is on the downtrend, most the activities related to silver would slow down.
What these people didn’t realize is, when silver price is going towards a downtrend, it is a good time to buy more instead of running away!
Someone asked me a question whether now is a good time to enter market. I don’t have a crystal ball and I cannot accurately forecast the future price, but I will give my personal opinion anyway.
Someone asked me a question whether now is a good time to enter market. I don’t have a crystal ball and I cannot accurately forecast the future price, but I will give my personal opinion anyway.
There are several very strong resistance, and support level for silver for the past 2 years. The numbers that we are looking at right now are $26 and $34. Since the price is around $27 these few weeks, I will tell you more about $26 support level.
$26 has been tested for several times this year. Once it hit $26, it is a dangerous sign because once it is broken, it will potentially go down to $18-$17. Again, $26 is a strong support. I see $26 as a bottom price. For now it is quiet unlikely to go down to lower than $26. Silver will be traded within the range of $26 – $34 in the short to medium term.
Today price is about $27, it is very near to the support level (the bottom $26), so to answer your question, yes, it is a good time to enter the market now.
One of the reasons why I’m being positive about this is because of the trend we are at. We are clearly at the end of consolidation since the peak in April 2011.
If silver price break support at $26, it will be supported at $17-$18. We would need another 6-12 months for silver price to climb back up. The good news is, if silver price doesn’t break $26, silver price will potentially go up to $50 or even $60 by end of 2012.
