The Premier Silver Resource Website
Visit GoldSeek.com
Visit GoldReview.com
Visit UraniumSeek.com

- CLICK HERE TO VISIT THE NEW SILVERSEEK.COM -
Live Spot Silver
Navigation
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes







 
Silver Update

By: Roland Watson, The Silver Analyst



-- Posted 17 September, 2009 | | Discuss This Article - Comments:

Silver has put in a real price push in the last few months having run from a low of $12.45 on the 13th July to a current best high of $17.66. Now the talk is of $25 or higher silver and $1500 gold. Buyers are coming out in force afraid to miss out on a big move and are piling into bullion, stocks and ETFs. Meanwhile the smart money is ready to take their profits and move on. Not because silver must be suppressed at all costs but rather because profits are the lifeblood of any business be it the sole trader riding the short term moves or the investment bank whose share price depends on consistently profitable buying and selling.

 

The chart below helps sum up the situation. It is the price of silver divided by its 200 day moving average (or RMA for short).

 

 

The chart goes back the entire length of this 6 year bull and the price of silver is superimposed in red. Note the horizontal line I have drawn at 1.300. I have also drawn vertical lines where the RMA crosses the 1.300 threshold. What is our conclusion? When the line is crossed, you do not open your wallet and empty it into gold and silver. Rather you lighten your postions and wait for the next great buying opportunity.

 

Note the previous crossovers. On the 10th March 2004 the line was crossed and silver peaked 3 weeks later. On the 28th March 2006 it crossed again and silver peaked one month and two weeks later. After this things got tighter as the threshold was crossed on 8th February 2008 and silver peaked 4 weeks later. Finally, it crossed the last time on the 1st June 2009 and silver topped a day or two later.

 

This Wednesday it crossed 1.30 again but only just at 1.31. The alarm bell has begun to ring but 1.31 is not a decisive enough break for me and needs monitoring. Will silver continue to rise for over a month like it did in 2006 or will it fizzle out like June 2009 after only days?

 

I donít know but rest assured this is not a time to buy in bulk unless you are disciplined with your stops and do not allow them to be unactionable at any time. Am I saying the silver bull is now dead and buried? Not at all! Was the bull over after the previous examples? Prepare for greater heights but donít get carried away at these critical junctures.

 

 

Further analysis of silver can be had by going to our silver blog at http://silveranalyst.blogspot.com where readers can obtain a free issue of The Silver Analyst and learn about subscription details. Comments and questions are also invited via email to silveranalysis@yahoo.co.uk.


-- Posted 17 September, 2009 | | Discuss This Article - Comments:



Article Archives

SilverSeek.com is presented to you by:

© 2003 - 2011
SilverSeek.com, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of SilverSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on SilverSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of SilverSeek.com, its affiliates or advertisers. SilverSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of SilverSeek.com, is strictly prohibited. In no event shall SilverSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.