JJP - The History And Current Status Of Silver As A Currency And Investment Asset

Summary

• Silver has a long and storied history as a form of money, dating back to ancient civilizations such as the Greeks, Romans, and Egyptians.
• The first known silver coins were minted around 600 BC in Lydia, an ancient kingdom in Western Asia Minor.
• In the centuries that followed, many other civilizations around the world used silver as a form of currency.

Silver as a currency

Silver has a long and storied history as a form of money, dating back to ancient civilizations such as the Greeks, Romans, and Egyptians. The first known silver coins were minted around 600 BC in Lydia, an ancient kingdom in Western Asia Minor. In the centuries that followed, many other civilizations around the world used silver as a form of currency.

However, there have been times throughout history when silver was not used as money. For example, during the early part of the Middle Ages in Europe, gold was the preferred currency because it was more portable and easier to store than silver. In addition, during specific periods of economic turmoil or instability, other commodities such as salt, cattle, or shells have been used as a currency.

Despite the decline in the use of silver as a currency, it remains widely used as an investment asset and in an increasing array of industrial applications, including electronics, solar panels, and medical equipment. Silver also retains monetary properties and can be used as money in barter and trade.

While it's difficult to predict whether we could actually run out of silver, as it depends on several factors such as the rate of global production, demand, and the development of new technologies for exploration and mining, it's worth noting that silver is a finite resource, and its supply is depleting. Analysts predict that at current rates, the earth could run out of economically mineable silver reserves by 2028, which could have significant implications for the market and economy.

Let's take a look at the Silver Weekly Standard Deviation Report and see what trading opportunities we find.

Silver: Weekly Standard Deviation Report

Summary

• The weekly trend momentum of 21.60 is bearish.
• The weekly VC PMI of 21.18 is bearish price momentum.
• A close above 21.18 stop, negates this bearishness neutral.
• If short, take profits 20.36 - 19.91.
• Next cycle due date is 2/28/23.

Market Update:

• The silver futures contract closed at 20.81, indicating that the weekly trend momentum is bearish.
• With the market closing below the 9 SMA 21.60 and the VC Weekly Price Momentum Indicator of 21.18, it confirms the bearish short-term trend and price momentum.

Trading Plan:

• Traders can take advantage of the bearish market by taking a short position and looking to take profits during corrections at the Buy 1 and 2 levels of 21.36 - 19.91.
• Alternatively, traders can go long on a weekly reversal stop and use the 19.91 level as a Stop Close Only and Good Till Cancelled order.
• If traders go long, they should look to take profits as the silver futures contract reaches the 21.63 - 22.45.

Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts. It is for educational purposes only.

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