N. PRASHANT CHOWDARY
21/01/2026
In a speculative market, what counts is imagination and not analysts By Benjamin Graham
Human nature being what it is, small loopholes are likely to be exploited until they become big ones, and big ones until they turn into financial disasters.
By Seth Klarman
The four most dangerous words in investing are: THIS TIME IS DIFFERENT.
By Sir John Templeton
Silver is called white snake in trading cycles, because its moves are so volatile in nature. To identify the market top is so difficult, the one who says that he has found the top price in any price movement is telling lies or he is in an illusion. Every thing in investing is a possibility and a probability. By observing the rise of price of silver for the past few months, the most probable event is reversal of the trend. Yesterday in my office I heard a interesting conversation where my friend’s mother has called him and stated blaming his father for not buying silver and asking my friend to buy some silver at this price. Indian women always think their husbands as an ambassador car, where it cannot be used nor sold. Then I thought that the price of silver is due for a correction. Wisdom of the crowd is important in general life but not in investing. From a economics point of view price rises parabolically when there is a short supply or an unexpected demand fall in place. But I have not heard any huge supply gap in the market or any mass usage in the market. Some times in market people speculate on price movement thinking that prices will go up. In any markets speculation and volatility is common, but after some time people will get involved in “GREATER FOOL THEROY”.
TECHINCAL ANALYSIS:
- Silver has formed the cup and handle formation in monthly time frame and completed its target price.
- The last monthly candle is above the Bollinger bands, where in silver trading history when ever this commodity has risen above the Bollinger bands, it is due for a correction (ex.1980,2011).
- Relative strength index is so over heated treading at 94, which is called over brought zone.
This view is only for short term purpose. For long term analysis different parameters will come in to play.
