Now is the time to buy silver despite the crash
28 September 2011
If you missed the opportunity to profit from the Silver run last time, be sure not to miss it this time. Hereās why we think, it is right time to buy silver despite the crash the metal prices have registered since the past week.
-Silver fundamentals remain positive despite the current crash. The big sell-off was primarily due to big money unwinding its positions to meet losses in other markets and the CME margin hike that accompanied only made it worse.
-The weekly RSI is near 40. Since 2002, silver prices have mostly rebounded from this level to new highs. The only exception being in 2008 when the economy was facing the situation of deflation.
-In the event of a global slowdown or recession, industrial metal production will be trimmed. As silver production is often a byproduct of industrial metal production, lower base metal production will mean lower Silver output.