Commodities have a good run in recent months and it is indeed time for a pull back. It is nice to see the silver price dropping about 10% from high of US$30+. For those who intend to buy silver or add position, is it a good time to enter? It is a question I asked myself. I first bought silver around US$21 and now waiting for a point to add position.
Looking at the iShares Silver Trust (SLV), the price has went below the 50-day moving average, but still very far away from the 200-day moving average.
In my opinion, the market in general should be coming down some more and thereafter, prices will stabilize and remain stagnant for a few months. This presents a good opportunity to add positions. Right now, I would wait for the price to be closer to the 200-day moving average before buying more silver. Let the price stabilize and the 200-day MA to do some catching up!
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.