In addition to nearing the 2013 lows we're hugging key support levels that prevent silver from moving much lower – to the $14 - $16 target area. Should this present level be broken, silver may likely move more sharply lower. Many, believing this significant it is easier to understand why this support line is not easy to break. Since gold, silver, and mining seem correlated in the short term, it’s also no wonder that silver’s refusal to move sharply lower already is accompanied by a similar refusal in the case of gold and mining stocks.
Silver is just above critical long term support
Silver has not broken down from this support
Silver has not broken up from trend line resistance*
One of these must give way in the next several weeks
No amount of pom pom waving or doom saying is going to influence it in one direction or the other
Mining stocks remain bearish, but not extremely bearish, which means that we don't increase the size of the short position just yet. Precious metals are not responding strongly to the dollar’s recent rallies so far, but it seems that investors and traders are simply waiting for a confirmation of the breakout in the USD Index. Again, time will tell. Tune out the caricatures in the media that have been wrong for years and understand gold’s real fundamentals and silver’s relationship to gold within the macro processes. It's work that is worthy of the effort and sure to last a life-time.
I do the same - can't stand the chain of "great idea" #$%$ - such a horrible abuse of what could be a useful tool for collab and discussion about the actual company and stock. thanks.
this is the worst message board - always the same "check google" I made tons of money #$%$ - thanks for an honest post
PM prices are not predictable. Silver follows gold and gold is used in too many financial transactions, mostly as a hedge. In other words, financial dealers can move gold price while gold itself doesn't present much interest for them.
It is true that higher gold price used to be linked to higher inflation, or better say, expectations of higher inflation. However, this link is based entirely on risk management considerations, i.e. market participants (aka financial dealers) used to employ gold as a hedge against unexpected inflationary burst. In result, if expectations of higher inflation become prevalent on market, then more market participants rush to take long derivative positions in gold (anti-inflationary hedge) thus increasing gold demand and causing higher price. It will not the main trade, it is for hedge (inflation risk reduction) only.
This financial mechanism is neither simple nor straightforward. There many ways of handling risk in financial transactions. Gold is just a small participant in derivative trading and it means that market participants are often willing to lose trifle on hedge if they can get gains on major ingredients of the trade.
The practical conclusion is following: one should never based investment strategy on hopes (dreams or speculations) that increase in gold price is imminent and will hapen very soon.
There is an article on Market Watch relating silver/gold prices to two factors mainly: Inflation (CPI Index) and medium term interest rates (5 year Treasury Notes). When CPI exceeds current interest rates, gold/silver tends to go up. So, if we can figure out what drives those two figures, we can have a happy investing experience.
I would say CPI is driven by up by a lower unemployment rate, changes in the "real" wage, and GDP growth (look for greater then 2.5% annual growth rate).
Interest rates are driven by the willingness of the Feds to loosen or tighten the money supply. Look at the monthly bond volumes that the government puts out there to sell.
There is a resurgence of the use of silver compounds in the treatment of wounds and bacterial infections. Read the article on the New York Times titled "Silver Too Small to See, but Everywhere You Look".
PAAS really changed my financial situation, made roughly $225k the past few months, been getting my stock alerts from underground stock alerts* (google em). Hope you guys have been doing as well with trading as I have.
Bruise, you've gotten into a GREAT trade at an excellent price. Silver will likely track gold (at least initially) and though I believe a bottom is likely made in this market.. July and August will probably mark the initial up that will take us to and through lines of resistance. Silver will trade through $23-$24 and then things will get interesting. You'll get a sense of all of this when it occurs.. 'til then, we watch paint dry. Objectives? Well, I'm looking for a punch through $50/ounce and beyond that... share price remains uncharted. I believe your $17 will be bid by eager hands and you'll later be sorry that you grabbed a profit... however, there are generally more buying opportunities than profitable selling opportunities. This is my story and I'm stick'n to it!