Emotions versus principles!
Today’s sharp decline in silver prices has certainly awoken emotions within many investors! Yet price action during the previous couple of months shows a healthy bullish undertone. This is the first sign that this rather quiet market has started to get more attention again…
In fact, it is typical that contracting price channels pick up volatility as an indication of a possible move out of these trading ranges in the future:
That being said from a larger time horizon perspective, Silver is trading much closer to its production cost prices than for example gold prices do at the moment. And silver remains a valuable asset to hold in a balanced wealth preserving portfolio. As such short term emotional bias evoked by news should not influence long term principle based decision making of how to mitigate risk with sensible exposure to this precious metal:
All charts timely posted in our telegram channel.