Summary
- Silver has a long and storied history as a form of money, dating back to ancient civilizations such as the Greeks, Romans, and Egyptians.
- The first known silver coins were minted around 600 BC in Lydia, an ancient kingdom in Western Asia Minor.
- In the centuries that followed, many other civilizations around the world used silver as a form of currency.
- This idea was discussed in more depth with members of my private investing community, Mean Reversion Trading. Learn More »
Silver as a currency
Silver has a long and storied history as a form of money, dating back to ancient civilizations such as the Greeks, Romans, and Egyptians. The first known silver coins were minted around 600 BC in Lydia, an ancient kingdom in Western Asia Minor. In the centuries that followed, many other civilizations around the world used silver as a form of currency.
However, there have been times throughout history when silver was not used as money. For example, during the early part of the Middle Ages in Europe, gold was the preferred currency because it was more portable and easier to store than silver. In addition, during specific periods of economic turmoil or instability, other commodities such as salt, cattle, or shells have been used as a currency.
Despite the decline in the use of silver as a currency, it remains widely used as an investment asset and in an increasing array of industrial applications, including electronics, solar panels, and medical equipment. Silver also retains monetary properties and can be used as money in barter and trade.
While it's difficult to predict whether we could actually run out of silver, as it depends on several factors such as the rate of global production, demand, and the development of new technologies for exploration and mining, it's worth noting that silver is a finite resource, and its supply is depleting. Analysts predict that at current rates, the earth could run out of economically mineable silver reserves by 2028, which could have significant implications for the market and economy.
Let's take a look at the Silver Weekly Standard Deviation Report and see what trading opportunities we find.
Silver: Weekly Standard Deviation Report
Summary
- The weekly trend momentum of 21.60 is bearish.
- The weekly VC PMI of 21.18 is bearish price momentum.
- A close above 21.18 stop, negates this bearishness neutral.
- If short, take profits 20.36 - 19.91.
- Next cycle due date is 2/28/23.
Market Update:
- The silver futures contract closed at 20.81, indicating that the weekly trend momentum is bearish.
- With the market closing below the 9 SMA 21.60 and the VC Weekly Price Momentum Indicator of 21.18, it confirms the bearish short-term trend and price momentum.
Trading Plan:
- Traders can take advantage of the bearish market by taking a short position and looking to take profits during corrections at the Buy 1 and 2 levels of 21.36 - 19.91.
- Alternatively, traders can go long on a weekly reversal stop and use the 19.91 level as a Stop Close Only and Good Till Cancelled order.
- If traders go long, they should look to take profits as the silver futures contract reaches the 21.63 - 22.45.
Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts. It is for educational purposes only.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
To learn more about how the VC PMI works and receive weekly reports on the E-mini, gold and silver, check out our Marketplace service, Mean Reversion Trading.
Equity Management Academy
Equity Management Academy is a team led by CEO Patrick MontesDeOca, a seasoned trader with over 30 years of experience. The team uses a proprietary AI system to identify investment opportunities and provide weekly reports for day, swing and long-term trades with precise entry and exit points. They lead the investing group Mean Reversion Trading. The group features reports and alerts from the AI Variable Changing Price Momentum Indicator. Features include: Weekly reports with actionable entry/exit points, research for trading futures, options, ETFs, indices and stocks, Early Bird Reports keeping the group ahead of market opportunities, and chat to discuss ideas. Learn more.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of HL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
