Silver futures just broke above $21 for the first time since August 2014
Preface
Just wanted to draw some attention to the surging precious metal markets. During the Brexit decision prices of Gold and Silver surged higher before coming back a little over the next day or two only to be reignited again with larger demand. There is no investment advise here just a few charts and some metric i find interesting.
Silver Market
The price of Silver has exploded in the last 4 days up 17% and broken through a key resistance area of $18-19.
Looking at historical support and resistance levels the next major resistance is upon us at $21.5 above that is more minor resistance at $23 and $25 before hitting stronger resistance between the $26-28 level
Gold Market
The Gold market is also looking very bullish although has not yet had the same run that Silver has had in the last few days, in the next section we will compare the price moves at a lower time frame but for now let looks at gold support and resistance levels
Gold is currently up against strong resistance at $1352 the level above this that are sucnificant are $1430 and $1550 with lesser resistance between these levels at $1480
Gold vs Silver comparison
Looking at a daily chart for 2016 we can see clearly that they are trading harmoniously and keep pretty good proximity; In the last 4 days Silver has surge ahead of gold!; at its peak Silver was up ~18% against gold
The chart below shows the ratio of gold to silver that is to say that gold is 66 time more expensive than silver at the current rate. The blue line represents a Volume Weighted Moving Average this line is sometimes referred to as the Point of Control (POC); this particular VWMA is taking into account the last 832 periods (16 year) suggesting and important point in terms of the ratio between Gold and Silver is approaching.
What will happen?
I don't know, i just thought the recent moves off the back of the Brexit and Yuan devaluation are interesting points and wanted to bring it to the attention of Steemian's who may not be focusing on these market. it looks to me there is definitely some interesting times ahead.
With the POC ratio coming up and given the price of Gold has not made a similar surge in the last few day i would think that Gold will start to rise which will increase the ratio and therefore relieve pressure on the POC to some degree. At the start of 2016 the ratio of Gold/Silver was quite high historically; so it looks like it was due for a correction.
TL;DR
Interesting times and a lot of money flowing into Bitcoin, Gold and Silver
Gold - Candles
Silver - Yellow
Bitcoin - Orange
This is why we should promote bitgold, bitsilver and bitbtc on bitshares. Bitusd, Bitcny etc have their place, but as cost of living increases due to a plunging dollar its precious metals and other commodities people will likely flee to and bitshares offers people that without any counterparty risk.
+5% (:D)
Crap, I got out of silver to buy cryptocurrency.
you will earn more in crypto, you see 50% swing on daily basis and dont have to wait years. Unless you have enough money to invest in both.
I invest in silver using CFDs, i can leverage up to 100x if i wanted volitality. What attracts me to crypto (specifically bitcoin) is scarcity.
I think bitcoin will become a 21st century status symbol.
yeah bitcoin might replace gold one day (only joking). But its very interesting, it certainly came a long way and its here to stay. Knowing that half if the world population doesn't even know what it is.
i think you will be fine... depending on what CC's you are in
Great post, annoyed I didn't write a similar one Friday when I bought. And I swore I was going to post my trade logs! >:(. Point being I've been posting some similar content, in particular an idea I had for working together to create a kind investor's network to share information like that in your article. Check it out here and let me know what you think: https://steemit.com/investing/@andrarchy/a-steem-powered-investing-network.
I like your idea, timestamped ideas along with running statistics and tradingview type charts to let the best trader rise to the top.... then we all follow his trade and make a whale club :)
btw: you got a '.' in you link
https://steemit.com/investing/@andrarchy/a-steem-powered-investing-network
Silver still holding above $20.
In January 1980 the price of an ounce of silver was $49.45
I can't think of anything that is cheaper today than it was back in the early 80s!
Many independent investors believe it should be 3 figures.