With the crisis in Ukraine dragging out longer than expected, it seems that precious metals remain at the centre of attention as they make ideal hedge investments in case of an ongoing situation that threatens a peaceful resolution to the Crimea issue. It seems that this is a very good time to buy silver at reasonable prices undertaking the least possible risk.
Hard as it may be for most of us to understand politics, it is close to impossible to understand politicians, especially when it comes to world leaders. After the referendum in Crimea and its peaceful annexation, it seemed as though a Russian invasion of the Ukrainian mainland was out of the question and was in the hands of diplomats to sort out the situation.
Nevertheless it became obvious that the Ukrainian people are deeply divided and, thanks to their politicians, there is still a lot of tension in the area: the concern that Russian forces are capable of moving into eastern Ukraine emphasizes the uncertain course of this crisis, with Western diplomats unable to predict Russian intentions.
The silver market reacted instantly and prices were kept above $20 per ounce all day Tuesday, although low volume indicated that there were not enough buyers eager to break the strong resistance barrier. Nevertheless with this week’s trading, the market fortifies near-term support levels even higher, and bids farewell to fears for a deeper correction.
The situation in Ukraine remains the stronger catalyst for the silver market as such a prolonged turmoil is clearly the result of Russian aggression in the wider area, and this is not a good sign.
Analysts will have to keep an eye on the sequence of events in the following weeks (or maybe months) with the natural gas crisis also in the back of their minds as Europe’s energy self-sufficiency is no more than an ambitious anticipation for the near future.
Technical analysis signals buy silver
Technical analysis clearly indicates that the steep correction from the $21.4 high is definitely over and that the positive long term trend is intact. Silver prices are expected to follow the usual congestion pattern, probably in the narrow channel between $19.6 and $20 per ounce, which will give the market the opportunity to gather forces as stability will make investors feel more secure.
Regardless of world events, current silver prices present a unique buying opportunity: silver has regained its status as an ideal safe haven in times of a seemingly never ending global financial crisis. Now dealing at a 1: 66 ratio with gold and given the fact that the gold market is doing very well, silver prices are bound to break the tested strong resistance of $20 per ounce sooner rather than later and resume an upward direction.
It is at this point a brilliant idea to determine your buying target price (ideally under $20 an ounce) and make the best of exceptional coininvest.com offers in silver bullion bars and coins.