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!
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