Monday, August 23, 2010

August 23, 2010


Why Fibonacci works that well I can not really say, although it does give a good math diagram from where prices may go. They say that the golden ratio of 1.618033 is the universes ratio and has been shown to be effective and accurate in many ways including the galaxies spiral disk. This is not about astronomy, but more towards silver. With the Fibonacci upside, what you need to do is find a relevant price range and from there you can calculate the upside. In this case I took the low of $4.00 that is shown from the early part of the 2000s and the double top in 2004/2005 around $8.00. Therefore I can do the following calculations

161.8% = Difference (4) x 1.618 + Bottom (4) = $10.47
261.8% = 4 x 1.618 x 1.618 + 4 = $14.47
423.6% = 4 x 1.618 x 1.618 x 1.618 + 4 = $20.94

The next level is 4 x 1.618 x 1.618 x 1.618 x 1.618 + 4. This is the 685% level and this gives us a price objective for $31.42. The way things are going it may seem as if it will take forever to make it to this level (and it may seem like forever), however with the economic trends we currently see, there is nothing I can see that bring the price of silver and keep it lower. In 2008 we seen the Silver price go from the $21 level down to $8. When looking at the logarithmic chart the move to this level is equivalent to a 61.8% reduction using the $4 lows and $21 highs. Markets can either correct through price or through time and this was a correction in price. In the last year we have seen silver ranging from around $17.00 to $19.00 and this is looking like a correction through time. Because the banking globalists are still in charge and the entire system is fraud, it is very tough to say that this range will break out to the upside. However, what is not tough to say is that our currencies have little to no intrinsic value, whereas silver bullion or any kind of real silver has tangible value.


Ratio Analyses Suggest Gold and Silver Will Go MUCH Higher!

“Analyzing the long-term relationships of gold with other assets suggests that, in most instances, physical gold and silver and the shares of the companies that mine those precious metals have major upside potential – truly major – in the years to come.”...

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China Natural Resources Inc. (NASDAQ:CHNR) stock is currently trading at $10.27, up 1.68% from its last closing price. The stock opened at $10.30 today and this price is also its intraday high. It has 52-week price range of $8.25-$14.98. Its 50-day moving average is at $9.28 and 200-day moving average stands at $10.88. The stock's EPS is $0.38 and its beta is 1.59. China Natural Resources' P/E ratio is 26.32 and its market cap is $227.23 million...

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