Silver Price Broke $26 Support

Last Friday (12th April 2013), silver price broke $26 support level for the first time. Silver price is now at the lowest for the past 2 years.

silver

Why did this happen?

  1. Federal Reserve is considering ending QE by year-end.
  2. Goldman Sachs (American multinational investment banking firm) put a sell recommendation for gold.
  3. Cyprus selling gold worth of 400 million Euros (equivalent to £341m).

I believe the question that matter to you most is, is now a good time to buy?

smallfallingknifeFirst of all, it is never a good idea to catch a falling knife. Catch a falling knife means when silver price is dropping, you buy when you think the price is low enough. If your assumption is correct, great! You manage to buy some cheap silver. You managed to buy at the bottom. Once the market bounce back up few days later, you already made paper gain without selling your silver. However, if unfortunately your assumption is incorrect, you suffer paper lost immediately because price keep falling. When price falls, it usually drops at much greater speed.

A better recommendation to deal with this price fall will be determining the support level and then only start buying when the price bounce back up. This will ensure silver price will not continue falling after you made your purchase. You might not buy at the rock bottom price but you surely will not get caught in a situation where the price continue go lower after your purchase.

bounce-support

The bad news is, this sophisticated technique requires you to have technical analysis skill to determine where the support line is at. A common method to find the support level is using Fibonacci Retracement. This method is not for everyone. Not only it requires the skills but also time and commitment to monitor the price movement. However, if you are interested to find out more, you can consider using this simple Fibonacci Retracement Calculator created by one of the members in Malaysia Silver Investor Membership to the help the rest of the members to calculate Fibonacci Retracement easily and quickly.  It was only intended to be used within the membership site. Now, with this member’s permission, I share this simple Excel calculator with you. You can download it here.

Dollar Cost Average is a more practical alternative to take advantage of the current price dip. This strategy is simple to understand and to follow. It does not require you to have specialized knowledge nor extensive time to stay closely to the market. For most people, it is a great strategy to practice. Even the experts Mike Maloney, David Morgan, etc highly recommend and using the technique themselves:

How Dollar Cost Average strategy works is simply allocating a fixed amount of money to invest regardless the price of the asset. In silver investment context, you can consider purchasing / investing fixed amount of silver every month regardless of the price fluctuation. For a start you might want to begin accumulating 1 oz every month. Later when you are more confident with silver investment, you might want to increase it to 2 oz, 5 oz, 10 oz or even 50 oz a month. It all depends on your financial appetite but the keyword here is consistently every month, for at least 12 months.

Here is a quick trick about Dollar Cost Average. If current silver price is significantly lower than your average price, you can consider ad-hoc purchase more silver (again, the quantity is depending on your financial appetite). For example, if your cost-average price is RM110/oz for the last 10 oz. During the recent price dip, price has gone down to RM100/oz. If you ad-hoc purchase another 5 oz of silver, your cost-average price will be also go down to RM106.67/oz. The calculation is as following:

 RM106.67/oz = (RM110 x 10 + RM100 x 5) / 15

In Malaysia, there is a monthly accumulation program that is suitable for Malaysians who have no time to follow price fluctuation closely. When you join the program, the company will invoice you every month to buy investment grade physical silver for you and deliver to you (or you can collect it yourself). You can find out more details here:

My Silver Accumulator – A silver monthly accumulation program.

My Gold Accumulator – A gold monthly accumulation program.

Remember, every investment moves in cycle. If there are down trend, there will be uptrend. Price will NOT stay low forever. The fundamental of silver investment is to buy low, sell high. But in order to sell high, you first need to buy low.

Silver Malaysia eBookTo find out more about silver investment, take a look at eBook: Practical Guide For Investing Silver In Malaysia. You will learn the finest tricks for investing silver in Malaysia.

Is It Time To Sell Silver?

silver_1_year_o_usd

You can notice that silver price has been on down trend since October 2012. So, is it time to sell silver now to cut your lost? The short answer is, NO.

David Morgan has a great saying about a market like this, “it will either scare you out or wear you out.” (Note: “wear you out” means making you tired). When you have a narrow view by focusing on a short period of time, you will get tired of chasing the pricing and afraid the price might continue drop lower. All you will see is negativity. Consider taking a longer period to see a bigger picture:

silver_5_year_o_usd

$26 is an extremely critical point. It has been a strong support for many times. It has been reported physical silver mining cost is between $26 to $28. Can silver price drop lower than this? POSSIBLE, but NOT LIKELY to stay lower than this for a long time.

About two-thirds of silver is used in industry and jewelry. If silver spot price dropped below $26, there are 2 possibilities could happen:

  1. Some miners will be forced to scale back / close down. Simply because no one wants to spend RM1.00 to produce a product to sell for only RM0.80. The industrial manufacturers will run out of silver once the current supply is dried out. Silver price will shoot back up drastically.
  2. The gap between physical silver price and paper silver price continues to get wider. The paper traders could short paper silver price to as low as $1 but no one will be able to buy any physical silver at $1 (as no one wants to sell at that price). Anyone who owns physical silver would be holding tightly to their silver and not willing to sell unless the buyer is offering a fair price.

Silver miner with nugget

The fact is there is 5 times less above ground available silver than there is gold (3 to 5 billion oz gold vs. 1 billion oz silver). Silver has thousands of application usages while gold has little. When we look at new supply including mined and recycled, new silver is only being added by about 10 ounces for every 1 ounce of gold. Yet investors are buying 50 times more silver for every 1 ounce of gold purchased.

This is totally unsustainable. The above scenario is like saying a manufacturer is selling 50 products a day but he could only produce 10 products a day. Where did the remaining 40 come from? It could be the old products that he has not sold previously, but sooner or later the old products will run out and that is when silver market gets REALLY interesting. By then, I would rather be gladly holding to my physical silver, than rushing to buy silver.

Since silver is both precious metal and industrial metal, silver price rises when

  • The economy improves and industrial demand grows, OR
  • The world’s major currencies continue to be debased (high inflation),

Remember, silver is an industrial metal first, precious metal second. But regardless which scenario happens, silver price rises. What if a robust economy and high inflation? Well, that is as good as you are getting a promotion (with increment) and bonus at the same time.

Personally, I do not think robust economy and high inflation are both happening together. World economy did not improve. Euro zone is still in trouble and US unemployment is still high. However high inflation is on its way. Few months back, US has launched Quantitative Easing Forever (they will be printing money without any limit, forever printing); while Japan announced their attention to double Japan’s monetary base to $3 trillion by the end of 2014. The direct consequence of such actions are high inflation. Precious metal is often a good hedge against high inflation. Robust economy? No. High inflation? Yes.

The most basic lesson in successful investment is Buy Low, Sell High. Simple theory, but many failed to truly understand it. In order to sell high, you need to buy low first. Unfortunately, when the price is low, investors are afraid that price might go even lower and then miss the opportunity to buy low.

So, what if you have already bought some silver at higher price, let’s say $35.00? Right now, when price is low, you can consider practicing Dollar Cost Average to lower your effective purchase price.

silver_1_year_o_usd

For example: Assuming exchange rate for USD and MYR is 3.15 and for simplicity sake, we remove the premium calculation in this example.

During this downtrend of silver price, if each time you bought the same amount of silver silver (let’s say 1 oz) at:

  • $35.00 (RM110.25)
  • $33.75 (RM106.31)
  • $32.15 (RM101.27)
  • $29.00 (RM91.35)
  • $27.00 (RM85.05)

Your effective purchase price (average cost) is ONLY RM98.85/oz. You do not have to wait until silver price go back up to $35.00 (RM110.25) before selling it just to break even. You can break even when silver price is merely $31.38 (RM98.85). Everything moves in cycle. When price move up to $32, although you bought some silver higher price at $35.00 (RM110.25), you can sell all your silver at $32 (RM100.80) each and already making some profit.

Silver Malaysia eBookDollar Cost Average is a strategy designed to protect investor from huge price fluctuation / changes. Dollar Cost Average is 1 of the 4 strategies I discussed in the eBook: Practical Guide For Investing Silver In Malaysia on the approaches to invest in silver. The preview chapter can be found here.

Silver Price Dropped, Now What?

Last week (20th Feb), silver price has a drastic drop of almost $1 within 6 hours:

In the past 30 days, silver price felt from $32 to $28.

Take a look at the longer term for silver chart from September 2012 to February 2013, we can observe the following:

Lower High

This chart shows a lower high pattern. Lower high means each of following high is lower than the previous high. High 1 peak is about $35, High 2 peak is about $34.40, High 3 peak is $32.25. In other words, High 3 is lower than High 2, and High 2 is lower than High 1. Let me repeat this, a lower high pattern where each of the following High is lower than the previous High.

Lower high is a pattern that signals market is losing strength. Does it mean silver price will continue falling? I can’t be sure as market tends to always surprise us. I won’t call the current price as a rock bottom price but it certainly is a good buying opportunity. Remember, in order to sell high, you need to buy low; unfortunately most people are afraid at that point that price might drop even further.

Throughout the last 10 years, there are many good buying opportunities. If you missed out the previous opportunity, you might not want to miss out this time. Remember my previous  question on when is the best time to plant a tree? The first best answer is 10 years ago. The second best answer is now!

If you are wondering whether you should cut lost now, I will share with you a simple guideline when to continue holding to an investment and when to consider let go. The solution is to refer back what were the fundamental factors that made silver a great investment. If the fundamentals have not change, keep holding. Remember, an arrow can only shoot forward by pulling backward first.

When comes to investing silver, you have to mentally overcome your own emotions, step back and look at the fundamentals silver. The world has limited supply of silver, rising costs of mining, growing investment demand and industrial demand, and an active currency war where the winner is the central bank with their paper money (fiat currencies).

Since about 75% of new silver supply came from mining, it is important to keep an eye on the mining cost. In Mid 2012, Pan American Silver (PAAS) claimed mining cost for silver is $13.87 per ounce. Many experts think the number is totally illogical and the actual mining cost for silver is $26.54. This would make perfect sense as why silver price has been strongly supported at $26 since 2011 until 2013 because that is exactly where the mining cost is. It cannot go lower than!

Strong Support

Is the price currently going to $26? If it reaches there can it be supported at $26? Most importantly, when is the best time to buy?

In Malaysia Silver Investor Membership, I showed a simple yet effective formula to the members on when is a good time to buy and sell silver. At the point of writing this ($28.76), the indicator shows it is a good time to buy some silver. You could wait till silver price touches $26 (the very strong support), but if silver price doesn’t go there and re-bounce to $30 range, you might have just missed a good buying opportunity. In silver investment, you would rather be 1 year too early and not 1 day too late!

On 20th Feb 2013, Eric Sprott (silver expert and billionaire fund manager) said he still believes silver is the investment of the decade. Eric stated silver should be $100 today, and he expects silver to massively outperform gold. He conservatively expects the metal to reach $200/oz, however $200 is not be considered as the top. He said, “When you trade 1 year’s silver production in a day- matter of fact I think we traded one year’s worth of gold production yesterday, which is absolutely ridiculous!“. All we know is that the price should be up massively, he added.

Practical Guide For Investing Silver In Malaysia (3rd Edition) is updated with latest information for silver investment. NEW chapters are added to provide quality content to readers. You will also receive FREE Special Report: Maybank Silver Investment Account

Gold Price

One of the members in Malaysia Silver Investor Membership has shared the following video (with the rest of the members) to show how ignorant people are on gold price.

We can’t entirely blame the people how ignorant they are on gold, because for the past 42 years, we are living in a world that uses fiat currency (paper money) for daily transaction.  In 1971, Richard Nixon, the president of United State back then took US Dollar off the gold standard. Before 1971, each Dollar is backed by certain amount of gold. After 1971, the  Dollar is just paper as the Dollar is no longer backed by gold. Since every country currencies  (including Ringgit Malaysia) is backed by US Dollar as reserve currency, from that point onward all the “money” in the world has become paper currency that the central government can print anytime and any quantity they like. While we as middle class are working hard everyday for that? How ironic?!

Most of us in this generation are brainwashed to believe that the paper currency printed by government (which is just some paper not backed by any gold) is actually money. We never have a proper / official education on the value of gold. Most of us buy gold for cultural reasons. It is just a wisdom passed from the previous generations. We never question or fully understand the fundamental of precious metals (gold & silver). This is exactly the reason why I started this silver blog to share more information on silver.

If there are so little people understand gold, there are even less people understand silver.

The potential for silver is extremely positive. Last 2 months, silver coins were sold out in US Mint for twice! Canadian Mint faced the similar shortage problem. Silver, apart from being a monetary metal, it is also one of the most highly sought after industrial metal that being used up in large quantity. China being the 3rd largest silver producer in the world still does not have enough silver and they have to import more from other countries.

10 Years Silver Chart

According to Christenson from Deviant Investor, the highs in 2004, 2006, 2008, and 2011 were at or above that trend line. A price of $15 in 2006 was just as extreme as a nearly $50 price in 2011 and a possible $100 price within the next two years. The ten year chart of silver prices is plotted on a logarithmic scale and shows a highly volatile exponential increase in prices over that ten year period. The higher trend line extends to approximately $100 by the end of 2013. Prediction – Certainly Not! Possibility – Yes!

If you are interested to find out more about silver, I highly recommend you to read the following book.

I have written Practical Guide For Investing Silver In Malaysiaan eBook specifically written for Malaysian in silver investment. You will learn different silver investment strategies and I will show you how to invest silver below market price! Click here to find out more.

Crocodile Silver Investment

CrocodileCrocodiles are by far the most successful animals that has ever lived. They have been around for about 200 million years and have out-lived the Dinosaurs. Crocodiles patiently learn the behavior of their victims and wait for long periods of time (sometimes to the point of starving). Then when the time is right, they snatch their victim with confidence and precision!

Crocodile is big, fat, long and needs A LOT of protein in his diet to survive, to swim and to hunt. Is his energy best spent going around all day eating little fish which are easy to catch? Imagine how much energy he would need trying to catch a high quantity of low-quality victim like that all day. The strategy for crocodile is to strike less but each strike take a big gain.

When comes to physical silver investment, we have to invest like a crocodile. Crocodile does not waste time on the small fish; as a silver investors, we do not waste time in the small price fluctuation. Silver price fluctuate between 2% to 3% in a day is very common, do not be overly concern about it and do not waste time chasing the price.

If a person goes in and out during small silver price fluctuation, he might end up like this guy. First, he tries to analyze when is a good time to buy silver. Second, once he is in the game, he monitor silver price closely. He buys when silver price shooting up, sells when silver price coming down (well, sound familiar?). Thirdly, he found out he has been losing money and soon, he is out of money and out of luck. Game over!

guy

If you buy and sell silver within a short period of time, you tend to end up like the guy above. For physical silver investment, do not waste your time chasing the price every day. In fact, looking at the silver price chart multiple times a day is a bad choice for physical silver investment.

Take a look at this chart that many silver investors refer to:

What does this chart tells you? Frankly, it tells very little except the current silver spot price. It is a light weighted line chart that can tell what is the current spot price but nothing more. The chart does not tell any trend and pattern, the chart does not show support and resistance. It is a quick and simple method to know current silver spot price, but sometimes what seems to be simple could complicate your life. On the other hand, if you are willing to spend a little time to learn silver investment, what seems to be complicated could simplify your life.

Personally, I only look at 8 hours chart, daily chart and weekly chart. Why? The longer the time frame, the clearer the trend is. On the other hand, the shorter the time frame, the more “noise” in the chart. The following is silver weekly chart since Oct 2011 till January 2013, there is a very clear wave and obvious range the price is traded for.

silver range

A crocodile investor patiently learns the silver price pattern and waits for the opportunity. When the time is right, he buys silver at bottom and sell silver at top with confidence and precision! A crocodile investor would have benefited from his silver investment in the following manner:

silver wave

In Trade 1, the crocodile investor had 14 days to buy his silver at price $29 then 21 days to sell his silver for $35.

In Trade 2, the crocodile investor had 28 days to buy his silver at price $28 then 14 days to sell his silver for $35.50.

In Trade 3, the crocodile investor had 98 days to buy his silver at price $27.50 then 28 days to sell his silver for $34.50.

If the crocodile investor had put in RM10,000 initially, after 1 year, his investment capital would have been rolled into RM19,208.75. You see, crocodile investor  only made 3 trades in a year to profit almost 100% return. He does not chase the small price changes every day or worry about the price fluctuation everyday. It is a total waste of energy. He looks at the big picture, learns the game and have a plan before investing in silver. Investing in silver without a plan is hunting in the jungle at night and hopefully kill a tiger. Common sense would tell us that is a joke. Come on, he would be lucky if he didn’t killed by the tiger instead.

Crocodile investment strategy is suitable for aggressive investors who have time and energy (although very little). There are other strategy such as dollar cost average that is for passive investors and other types of strategy where I discussed in eBook Practical Guide For Investing Silver In Malaysia.

There is no one size that fits all investor in silver investment. In the eBook, you would learn different options for investing silver in Malaysia. You need to understand different options so that you can choose one suitable for yourself. Click here to find out more.

Happy Deepavali Silver Price Update

Click on image to view full size

It is important to understand Support level and Resistance level as they are some of the most important parts in technical trading. When silver price breaks current resistance level, the current resistance level will become the support level for next trading range. Similarly when silver price breaks current support level, the current support level will become the resistance for next trading range.

The red color is the current resistance level, if price ever break the resistance, it will be a clear sign to enter the market as silver price is at the floor price for the new trading range. On another hand, if silver price breaks the current support level (in green color), it is a clear sign NOT to enter the market as silver price is at the sky price for the new trading range.

This is a sample post from Malaysia Silver Investors Membership. If you are interested to learn more similar posts and stay ahead in your silver investment, consider joining Malaysia Silver Investors Membership:

Silver Technical Analysis by FutureMoneyTrends.com

The following article is provided by Joshua Enomoto, FutureMoneyTrends.com:

What a difference a day makes! After three weeks of significant downturn in the silver market, it appeared that the bears lost downside momentum, and that the bulls would regain control above critical support lines in order to launch a concerted assault on the revered $50 price point. Instead, Friday of November 2nd happened, taking whatever pretense of predictability the COMEX may have had, and shoved it way down the nearest drainage ditch. 38,400 contracts, or 191 million ounces of silver being sold off within the space of 10 minutes can have strange effects on people: Elation for those who received a “word of encouragement” and thus initiated massive short positions, but despair for most not privy to such advanced warning. After such devastating losses, is it wise to be in this market? Prominent commodities experts like David Morgan think so. In fact, there are many compelling technical arguments to suggest that the recent downswing has been overdone, both in the physical bullion itself, as well as the companies that mine it from the earth.

First, let’s start with a technical overview of spot-silver:

Friday’s sell-off puts silver bullion right on the 1st support line, which coincides with the current 200 day moving average. The single day drop was accompanied by immense bearish volume, which is rather peculiar (read suspicious) due to the fact that the overall volume trend was decidedly downwards and negative, as momentum traders, or the weak hands, began to exit the market after silver failed to rally beyond $35 since the announcement of QE3.

Is the technical implication as bad as it appears? There are two schools of thought here. Market participants may want to brace themselves for an attempted mauling of the $30 key psychological support barrier. If the bears can succeed in driving prices that low, it would violate the 38.2% Fibonacci retracement level of the August rally, and would suggest further downside towards $28, the last line of support before a nerve-wracking drop to 26. On the positive side, we can see that from October 5th until the 23rd of that month, the bears succeeded in taking the price down from the high-34’s to $31.50, which represents a 50% retracement. From $31.50, the bulls put on the brakes and mounted a slow climb right underneath the main trend line, or roughly where the 200 DMA is located. The fact that we saw a rising consolidation pattern develop off the 50% retracement level tells me that most of the weak hands did indeed exit the market.

So what about the Friday sell-off? It’s either conspiracy or lunacy…an act of collusion or a moment of panic. Which brings us to profitability, the art of cashing in on black swan events. Aside from investing in the physical bullion or ETF’s that track spot price performance, another avenue is through the mining industry. While investing in mining companies does have its fair share of critics due to the fact that there are several variables exclusive to the industry that often results in a lack of correlation between the company and the underlying asset, many top silver producers are technically poised for a breakout move.

Thanks Joshua from FutureMoneyTrends.com provided such an insightful technical analysis. Some investors might consider the above analysis is a little too complicated. I have discovered a simple yet practical and powerful formula for you to use to determine when is a good time to buy silver and when is a good time to sell silver to maximize your profit. The formula is available in Malaysia Silver Investor Membership.

This is a Lifetime Membership. You only pay once and you can stay inside for as long as you wish – to learn all about silver investment in Malaysia. Click here to find out more. Inside, you will receive latest silver market news, see myself and the other silver investors discussing about tips, tricks and strategy how to maximize our profit in silver investment.

Silver Price Update 14 Oct 2012

A quick update for silver price. This is the weekly chart for silver. There are many period for technical analysis ranging from 1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 8 hours, daily, weekly, monthly. So, which one should you use?

Personally, I would ignore any chart between 1 minute to 8 hours because they consist of too many “noises“, changes too rapidly and confuses the trend. In fact, as long-term and value investors we do not have all day to monitor silver chart. We want to look at something fundamentally strong which is the weekly chart.

In this chart, silver price is meeting a strong resistance at $36 and strong support at $26. Although we have broken from the flag formation (click to learn more about flag formation), silver price is still trading within the range of $26 to $36.

So what does it mean? There are 2 possibilities outcome for this pattern.

First possibility (Direction A, refer chart above), silver price will be finally breaking out from the strong resistance. It will shot all the way up exceeding $40 by the end of the year.

Second possibility (Direction B, refer chart above) silver price movement is again blocked by the strong resistance at $36. Silver price will continue to trade within $26 – $36 range until the next attempt to break the resistance.

I discuss silver price forecast in my membership site in detail. If you are interested learning silver price movement, I recommend you to join my private silver investor membership site to receive frequent updates. In fact, this update is given to my members way earlier before it hit the public. See you inside!

Silver Breakout – To Buy Or To Wait?

On 21 August, I wrote a post titled: Silver Price Explode 2012. Market started to get exciting and silver price closed at $30.82 last Friday. Without a doubt silver price has its breakout. It is being trapped into the flag since May 2011 and finally has it breakout now.

There was a reader got a little too excited with the price moving straight up for 3 days and bought 20oz of physical silver. Right after he bought them, silver price started to fluctuate around $30.50 and did not go up much. He started to get worried and asked me what happened. Well, silver price does not move up continuously for many days without any pull back. We need to set our expectation right. I repeat, silver price will not going up straight consecutively for 30 days without any pull back.

Anyway, the questions I have been getting for the past few days are:

  • Should I buy silver now?
  • Should I wait?
  • How high will silver price goes?
  • Will silver price come down?
  • When is the best entry point now?

I will answer all the questions above with the following diagram and give you a “suggestion” what you should do later on.

Referring to the graph, there was quiet a resistance at price $30.50 (end of 2011) that stops silver price from going up. Although silver price broke out, silver price is now hitting the similar resistance like what happened in end of 2011.

I won’t bore you with a bunch of technical analysis, let’s get straight to the point of what does it mean and what we should do.

  1. Silver price breakout, that’s for sure and it is a good sign that silver price was moving up in the long term. We are targeting silver price to go up to $35-$40 by end of 2012 and $50-$65 by end of 2013.
  2. If you did not follow my “suggestion” to buy when price was $26-$27, what should you do now? Should you wait any longer or buy now? Obviously, the short answer is “Don’t wait, buy now. Silver price is going to move up much higher, this is just the beginning.” Right now the price is about $30, imaging when price went up to $60 by end of next year, you will be beating yourself for not taking action now. (Just like how you didn’t buy property in KL / Penang during year 2008 / 2009?)
  3. For short term, silver price is facing a possible pull back at $30.50. If you want to be cautious, you might want to wait for silver price to break $32 before entering. Personally, I do not like betting the price to go up or come down. If I have RM200, I will spend RM100 to buy silver now. If silver price does pull back, good, I will spend the remaining RM100 to buy cheap silver; if silver price continues to go higher, great! I will spend the remaining RM100 to buy again the catch the bull trend. There is no right or wrong method but that’s how I will do it myself and how I have been advising my eBook readers and lifetime membership members.

To learn more about practical steps and guide to invest silver in Malaysia, download Practical Guide For Investing Silver In Malaysia. I will guide you step by step how you can quickly start your silver investment and how to buy silver below market price.

Silver Price Explode 2012

I have talked about the flag pattern earlier in March 2012. The forecast was, when silver price approaching the end of the flag, silver price is set to explode! If you have not read it, feel free to check it out here: Cheap Silver Ends In 2012This is how the flag looks like:

Right now, we are at the end of the flag pattern. Silver price is set to explode anytime now. Yesterday (20/8/2012), silver price has up +.51 in a single day. Chris Duane (the founder of Silver Shield Report) mentioned:

We need to get above $30.61 to get the party started and bring out the silver rockets.  The reason I say $30.61 because that is the 200 DMA and the point that breaks out of the 16 month cup and handle formation.  I feel we have until next month until the real fireworks start.  And unfortunately you are probably not going to like the kind of fireworks you are going to see…

On July 24th, Mike Maloney suggested that silver investors only had a month at the most before beginning a breakout with the price of silver.

Take a look at this chart:

You see, silver price is MIGHT NOT explode tomorrow but we are nearing the end of bear market. I mean very very near. When the price explode to $42-$48 in the next 6 to 12 months, you will be grateful that you have bought your silver now at $28+. Why $42-$48? I have a detailed explanation on my eBook – Practical Guide For Investing Silver In Malaysia. In fact, that is a very potential price you should target to exit your silver for the short term.

Personally, I have buying silver like crazy for the past 1 month to prepare for this moment. I have been buying a lot of silver rounds and some silver bars. I prefers silver rounds over silver bars because silver rounds is always being perceived as money (even though it is not). The bottom line is, I do not want to beat myself up and regret that I didn’t take any action when silver price is cheap. If you can remember during year 2008-2010 (3 years), property price in Malaysia was dirt cheap. Right now when we look back, we might call ourselves silly for not taking action to invest in property back then in 2008-2010.

The fact is, when we are not equipped with the  knowledge to take action, we often miss the opportunity. That’s why I have written the  eBook – Practical Guide For Investing Silver In Malaysia to teach Malaysians to take advantage on the silver price explosion. We all understand silver market changes from time to time, that’s why I have included a *Lifetime FREE Updates* for you if you download the eBook today.

Happy investing! I will see you in the membership site.