I hope you’ve been getting as much sunshine as we have in London!
I always thought my birthday was in winter, but when the day passed last week, it felt like spring.
I’m currently enjoying the sun as I write this on the roof of my flat on Sunday. It’ll be a busy week ahead with the launch of our 2019 Gold Summit, but it’ll be worth it. I’ve had some incredible conversations with some of the best minds in the gold world for the event, and I’m looking forward to sharing those conversations with you. Click here to get a ticket if you haven’t got one already.
In the meantime though, I’m waiting on a nuke.
My colleague Eoin Treacy likes to say that “ranges are explosions waiting to happen”. A “range” in this context is when a financial asset bounces between two price points for an extended period of time. During these periods when there is little external news to move the price up or down, those that are bullish buy on the small dips, and those that are bearish sell on the small rallies.
As time wears on without an external event, or “catalyst”, the asset trades in an ever narrowing range. Volatility is compressed, until a catalyst arrives and the asset explodes – either to the upside or the downside depending on the news.
Generally when Eoin is looking for such opportunities in stocks, the ranges don’t last too long before something occurs that can be taken advantage of. But silver however, has been ranging for years:
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If ranges are indeed explosions waiting to happen, we may be waiting on a nuke here. What would be the catalyst to trigger such a nuke? And would it be to the upside or the downside? I’m bullish on silver, but I’m also biased – I can’t own enough of the stuff (latest acquisition: the Royal Mint’s latest, the first time Britannia has been featured on a bar rather than a coin).
I recommend you tune into the summit later this week and find out what some of the world’s finest minds in precious metals think about it. Eoin, who decided the time was ripe for our summit in the first place, views silver as “high beta gold”, meaning its price will follow gold’s direction, just more violently. If he’s right that “the big one” is coming for gold, it’ll be nuclear sunshine for silver.
All the best,
Boaz Shoshan
Editor, Capital & Conflict
Category: Investing in Gold