Hi Friends,
I was looking at the silver chart the other day, and the two year chart looks like we may be ready to start the next rally. However, the charts almost don't matter too much as natural resources tend to buck any trendlines or trading patterns.
Which got me to thinking, what are other indicators that silver could be headed higher. One of my conclusions was the higher premiums on silver coins and rounds. Does increasing premiums mean that people are unwilling to sell at current prices?
There certainly could be other factors - such as a simple scarcity of minters which could lead to the physical bullion being harder to obtain, thus causing a higher price. Certainly you can buy any "paper" silver you want near spot price so that isn't a factor (unless the wheels fall off the cart and those holding physical are the ones who really own any of the silver).
So do you think increasing premiums on physical silver point to silver being undervalued and ready to increase in price?
Thanks for engaging with me!
Brian
Thanks again for the report, @brian.rrr. I think the World is running out of Silver.
We are at the mercy of big holders of silver. But to some extent, it may be as you say increasing premiums mean that people are unwilling to sell but ordinary guys like me should be attracted to see at high prices.
Makes sense to me!