Silver Does It Again!
It starts looking like another tough day, ends up to be a happy ending afterall. My persistent in silver has brought me profit again, as I've been doing more researches yesterday and I managed to convince myself that today isn't a day for commodities to crash. An article from Kitco.com suggests that when Spring(March) starts, gold and silver will on the bull rush again, gold potentially reaching USD 730/ounce and breaking it and silver potentially reaching USD 19.20. All of this price movements is just the warm up of the actual thing that is yet to come. Corrections is a must in commodities market as it's no heaven trade and goes up the time, if it goes up all the time, every single trader in the world would dump all their money in commodities. Too bad this doesn't happen. Anyway, let me re-list all my trades
400 units of silver @ 13.4000
360 units of silver @ 13.2800
240 units of silver @ 13.2750
320 units of silver @ 13.2000
280 units of silver @ 13.1380
After I completed writing my blog yesterday, I continue to observe for any sign of recovery in the market. No sign of recovery but it somehow managed to find a support at 13.2000 area, that's when I made another purchase of 320 units of silver. The whole night (time in Malaysia GMT+8), it just maintained itself at 13.2000 range. A new day with hoping for a better tomorrow.
During Asian session of a new day, silver shows no sign of strengthening or positive outlook, instead it shows consolidation, a sign of make-or-break. Late Asian session at estimated 2 am EST, silver dropped to a significant lower price, by then I'm already having a drawdown at more than 25% of my initial amount. As I'm still feeling a comeback, I make another purchase, 280 units of silver @ 13.1380.
My view in the market proves on the right move after I made 13.1380 and as soon as it reaches a new opening hour, I knew silver reached the low where it'll attract traders to purchase it. Once the London market opens, silver market shows improvement and potential break and looks very promising for a profit.
In the matter of fact, it did. I managed to take profit (earlier than what I had in mind due to much persuasion from my partner) around 1.3000. This early profit has earned me 9.1% of profit which is around USD 91. I've set an aim to earn 20% before the end of January and tomorrow is the last day... I doubt myself the rally of the market these days will bring me another 11.9% within 24 hours itself. However, this disappoints me.
I've done some research myself on what is silver being used for and the supply and demand. Questions popped in mind, " Does it matter?" The answer is "YES". Most market pushers for commodity market is the supply and demand. Below is the list of the uses and the supply demand data that I've managed to find through a free source in the internet. I'm planning to get the latest 2007 CRB Commodity Yearbook which contains essential information of every commodities trader would need.
Uses
Demand for silver is built on three main pillars; industrial and decorative uses, photography and jewelry & silverware. Together, these three categories represent more than 95 percent of annual silver consumption. In 2005, 409.3 million ounces of silver were used for industrial applications, while over 164.8 million ounces of silver were committed to the photographic sector, and 249.6 million ounces were consumed in the jewelry and silverware markets. Why is this indispensable metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. Silver’s unique properties restrict its substitution in most applications.
It's been used for Batteries, Bearings, Brazing and Soldering, Catalysts, Coins, Electrical, Electronics, Electroplating, Photography, Medical Applications, Jewelry and Silverware, Mirrors and Coatings, Solar Energy, Water Purification. So tell me, how much does silver worth to you?
Happy Trading Everyone! Have a nice day!
400 units of silver @ 13.4000
360 units of silver @ 13.2800
240 units of silver @ 13.2750
320 units of silver @ 13.2000
280 units of silver @ 13.1380
After I completed writing my blog yesterday, I continue to observe for any sign of recovery in the market. No sign of recovery but it somehow managed to find a support at 13.2000 area, that's when I made another purchase of 320 units of silver. The whole night (time in Malaysia GMT+8), it just maintained itself at 13.2000 range. A new day with hoping for a better tomorrow.
During Asian session of a new day, silver shows no sign of strengthening or positive outlook, instead it shows consolidation, a sign of make-or-break. Late Asian session at estimated 2 am EST, silver dropped to a significant lower price, by then I'm already having a drawdown at more than 25% of my initial amount. As I'm still feeling a comeback, I make another purchase, 280 units of silver @ 13.1380.
My view in the market proves on the right move after I made 13.1380 and as soon as it reaches a new opening hour, I knew silver reached the low where it'll attract traders to purchase it. Once the London market opens, silver market shows improvement and potential break and looks very promising for a profit.
In the matter of fact, it did. I managed to take profit (earlier than what I had in mind due to much persuasion from my partner) around 1.3000. This early profit has earned me 9.1% of profit which is around USD 91. I've set an aim to earn 20% before the end of January and tomorrow is the last day... I doubt myself the rally of the market these days will bring me another 11.9% within 24 hours itself. However, this disappoints me.
I've done some research myself on what is silver being used for and the supply and demand. Questions popped in mind, " Does it matter?" The answer is "YES". Most market pushers for commodity market is the supply and demand. Below is the list of the uses and the supply demand data that I've managed to find through a free source in the internet. I'm planning to get the latest 2007 CRB Commodity Yearbook which contains essential information of every commodities trader would need.
Uses
Demand for silver is built on three main pillars; industrial and decorative uses, photography and jewelry & silverware. Together, these three categories represent more than 95 percent of annual silver consumption. In 2005, 409.3 million ounces of silver were used for industrial applications, while over 164.8 million ounces of silver were committed to the photographic sector, and 249.6 million ounces were consumed in the jewelry and silverware markets. Why is this indispensable metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. Silver’s unique properties restrict its substitution in most applications.
It's been used for Batteries, Bearings, Brazing and Soldering, Catalysts, Coins, Electrical, Electronics, Electroplating, Photography, Medical Applications, Jewelry and Silverware, Mirrors and Coatings, Solar Energy, Water Purification. So tell me, how much does silver worth to you?
Happy Trading Everyone! Have a nice day!
Labels: commodity, currency discussion, economic discussion, forex, forex discussion, silver, strategy, US economy, usd fundamentals, XAG/USD, XAU/USD
posted by 4xTrader at
11:23 AM
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