Silver dipped below 15 briefly in NY morning trading Wednesday, then soon recovered to finish the American day at 15.06. Phew – close call, right?
Wrong. Silver is again below 15 in morning NY trading, at 14.91 as I write this.
Last week I wrote about why I am cautious on silver right now. That sentiment still holds – despite all the reasons why silver should go up, it’s not.
You see, at the end of the day there are lots of opinions, speculations, and market expert advice-givers out there. There are always reasons why the market – or silver – can go up, or down. But what you actually make money from is being on the correct side of a trade. And that means following what price charts are trying to tell you.
And what they’re saying right now, loud and clear, is that it’s still a time for caution when it comes to silver. If you buy it wanting it to go up, you may have to wait a while. That while may be short, or it may be long. But you’re going to have to wait. 15 is a Very Important Price for silver; when silver is below 15 it tends to stay below 15. When it’s above 15 it tends to stay above 15. But when it’s back at 15 having been higher – well, let’s just say it had to come down to get back to 15, and now that it’s below 15, it’s — below 15.
Or as the technicians would say: Silver is below resistance and fighting just to hold on to support.
If there is any smart money in silver it is buying small at this point, so as not to tie up too much capital. Having a “taste” in your portfolio right here isn’t a bad thing, but you have to be willing to wait.
The time will come when silver will go up, it always has. But seldom has it come when “everyone” is expecting it. And it certainly doesn’t look like it will be going up much today.
Be patient, live long, and prosper,
The Gold Enthusiast
DISCLAIMER: The author has no positions in any mentioned security. The author is currently long FNV, FSM and SVBL in small positions, and may trade these in the next 48 hours if the market cooperates, or bites.