$Silver Mines Ltd(SVL.AU)$Silver, just like all things commodities, was not long ago a darling for investors and speculators alike. Now it has become the latest member to be hated and avoided.
Not all members of the precious metals group are created the same. Some are more hated than others. Silver, platinum, etc, those with industrial applications are suffering badly along with the other materials associated with growth. Gold on the other hand, suffers relatively mild correction.
From charting point of view, the next defense line for silver is $18.8. It is a low not seen for a while. However, with the price of silver hovering close to $19. The support line in fact appears vulnerable. If this support line is breached, there is a danger that this downtrend in silver will continue for some time.
I am still keen in silver but I won't be doing anything until the trend becomes clearer and if the support holds. If the support fails, I will revisit when the opportunity presents itself again.
I am optimistic in silver for both its industrial use and inflation protection capabilities. Gold on the other hand just sits there, doing nothing, which happens to be what the rest of the crowd loves in this uncertain time...
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