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When to buy silver? By Stock News


সময় Reuters When to buy silver?

Silver (SLV) has been down for the last 9 months but is finally showing signs of life. The fundamentals remain positive with inflation and loose monetary policy. Taylor Dart explains why you should consider buying It was a 9-month stretch for Silver (SLV) investors, but periods of significant weakness often create the conditions for violent reversals, and bulls are finally enjoying We start Q4. While the S&P 500 (SPY) rose 3% for the month, silver rose 6%, and the Silver Miners Index (SIL) rose 11%, leaders like GoGold Resources (GLGDF) are embarrassed by the new 52. The height of the week. Typically, a 10% rally in less than ten days will turn some profits into energy. However, with the feeling that silver reached its worst level of the year last week, I see no reason to rush for profit. Instead, I think we could be in the first innings of a multi-month rally for Silver, which should translate into significant side-scrolling for the best names in the sector. Let’s take a closer look below:

(Source: Daily Sentiment Index data, author chart)

The chart above shows a bullish attitude towards silver for more than three weeks below the 25% level in September, suggesting having three bears for one bull per market. Last week’s bullish sentiment finally dropped to a 10% reading, indicating a reading of nine bearish market participants who were bullish and these extreme readings often become the tail end of the bear market. Although nothing is certain, the extended period of frustration usually lasts for many months before the 20% plus rally at the price of silver, giving anyone the opportunity to buy a pullback. So, while some investors who have bought dives may be concerned about taking profits into strength, I believe the best silver mines are going much further from here in the next six months. This is because there is nowhere near the silver selling signal, and the silver selling signal we will get as soon as possible will be in January, based on how disappointing the readings in the last nine months have been. For reference, the last time market participants had this bearish was in September 2018; Silver rose 22% over the next 12 months, while the Silver Miners Index enjoyed 40% plus rally.

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