Silver : Negative Interest Rates, QE4, End of Petrodollar
All long-looking indicators point to silver being undervalued vs gold . Top chart shows silver candlesticks vs gold red line as percentage returns since 2006 in the case of these investment trusts. Middle indicator is the Trader's Dynamic Index ( TDI ) which holds a combination of moving average, volatility and momentum trends. Bottom indicator is the infamous Gold:Silver ratio.
Silver is sitting on top of the .382 fib level support shown in the chart, which is where the current cost of production resides around 14.75/oz. Low risk, high reward - this is a perfect setup for those interested in making an inflation play going toward negative rates, QE4 and the end of the petrodollar agreement.
% Returns Analysis: Silver below Gold -> Silver undervalued
Fibonacci Level: Strong support at cost of production near 114.75/OZ
TDI: Bullish divergence in formation
Gold/Silver ratio: 83:1 -> Silver undervalued
Note: SLV is not equivalent to owning physical silver. Trade SLV at the risk of fund insolvency and loss of investment - most holdings are suggested to be physical.
Silver is sitting on top of the .382 fib level support shown in the chart, which is where the current cost of production resides around 14.75/oz. Low risk, high reward - this is a perfect setup for those interested in making an inflation play going toward negative rates, QE4 and the end of the petrodollar agreement.
% Returns Analysis: Silver below Gold -> Silver undervalued
Fibonacci Level: Strong support at cost of production near 114.75/OZ
TDI: Bullish divergence in formation
Gold/Silver ratio: 83:1 -> Silver undervalued
Note: SLV is not equivalent to owning physical silver. Trade SLV at the risk of fund insolvency and loss of investment - most holdings are suggested to be physical.
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