-- Posted 12 November, 2006 | |

The silver mines that are valued by us as especially sound and prospective are comprised within the silberinfo index (SIX) which index has reached a new high of 108 points last Friday. After the heavy correction until the beginning of October to 86 points, the SIX began a new upward trend on October 5 that has reached a new high at 108 points last Friday and therefore has risen approx. 26%.

During the same period, the HUI-Index rose from 275 to 332 points – an appreciation of almost 21%.

The red middle-trendline at 325 points has now become an important and strong support-level. However, the HUI could not yet break the upper triangular leg at around 350 points. As soon as this resistance has been broken, one can count on a strong boom above 400 points. The consolidation period has come to an end – as soon as the upper leg is being broken as an explosive thrust to the upside is then probable.

The USD has just lost strong support at 85 points and its respective triangle is now likely to thrust to the downside – as crash-like as the first thrust to the downside in May 2005.

On the long-term chart one can see the USD losing strong support at 85 points. We are anticipating the Dollar now to fall to the red legs of the massive triangle between 80 and 83 points. Thereafter, we are anticipating a historic crash – a massive thrust to the downside of the red triangle.

The gold price in USD has already started to end its correction and consolidation period since May 2006 as the price has successfully broken the upper resistance leg of the red triangle. We anticipate a strong and explosive thrust to the upside to a new high above $725.

The silver price in USD has as well just broken the upper leg of its triangular price formation – which is a very bullish sign.

© by www.silberinfo.com

At the same time as the USD is depreciating and the Euro appreciating strongly, the gold price in Euro is on the rise as well – which is an overall bullish sign for precious metals in all currencies right now. Euro-Gold succeeded in breaking the upper leg of its triangle, which is a bullish sign that the correction and consolidation period since May 2006 has just ended and a new upward trend has just begun.

Euro-Silver broke the upper triangle leg a few days ago generating a buy signal.