Gold and Silver
By: Sol Palha, Tactical Investor | 26 February, 2010

From high to Low Silver has dropped over 24%. From high to low Gold has so far shed only roughly 12%. Silver also did not take out its 2008 highs when Gold went on to put in a series of new all time highs. This is another massive intra market negative divergence signal and yet another reason to suggest that Gold could correct/consolidate for several months. On a positive note gold has held up remarkably well in the face of a very strong rally from the dollar. If it continues to hold up like this, then when the dollar rally finally fizzles out, one can expect gold to literally explode upwards. Full Story

Silver is Standing Tall
By: Alan Lunt & Sol Palha, Tactical Investor | 14 April, 2004

It appears that the last article by Sol and myself hit a nerve centre. I used the analogy of a bank and the fractional reserve banking system. I used that analogy because in the first instance silver is money, and in the second instance banks control money. When it comes to the banking system the Central Bank always stands ready with funds to support a distressed financial institution. In general it is financial institutions that are short silver big time, so in reality the Central Bank can come to their assistance at any time with fresh funds. They can keep this situation going figuratively forever. But there is one problem, and that is that silver is the type of money that cannot be depreciated forever. Full Story

Is Silver Short or Standing Tall?
By: Alan Lunt & Sol Palha, Tactical Investor | 9 April, 2004

Since Silver is the poor mans Gold and is in reality a currency, though most try to deny that it is one, it will do much better than Gold in terms of % gains. The reasons are simple one of them is Psychological, people always want to get the biggest bang for their buck and Silver allows them to do this. In addition there is a really terrible scandal waiting to unfold one of these days in regards to Silvers price suppression that has gone on illegally for decades. When this Scandal unfolds the consequences are going to be extremely huge and sadly negative. How negative these effects will be is just too difficult to predict. Furthermore, Silver unlike Gold has industrial uses other than just being seen as currency. It is metal that is of outmost importance to many applications and we have no substitute to date. In addition most of these applications destroy Silver, so unlike Gold that is basically circulating around the world in one form or another, most of the Silver used in industrial applications is destroyed forever. Full Story

The Silver Lining
By: Sol Palha, Alan Lunt, George Paulos & Janice Dorn, Tactical Investor | 26 March, 2004

I will leave it to my esteemed colleagues to put up some of very thought provoking numbers that will back what the charts are showing above. Unlike Gold, which is still not doing much in multiple currencies, Silver is breaking through all of them, indicating that it is in a true bull market. Its ironical that the poor mans gold is yielding better results than the rich mans gold. Now if that’s not contrarian I don’t know what is? It looks like being a contrarian in every aspect of your life can be highly rewarding. Silver is going to be the truly wild card play and that is why since the middle of 2003 we became extremely bullish on this Metal and stated that it would out perform Gold. At that point in time we had no Idea that it would blast Gold into the dust so badly. Silver is currently the number one sector and has been so for the last 6 weeks and counting. The super trend has been set in motion and unlike Gold; Silver has reared its head in all almost all the major currencies. This is what is defined as true raging bull and any major pull backs should be seen as a gift from heaven to buy even more of this incredibly useful metal. Full Story