Thursday, August 26, 2010

August 26, 2010

Silver is over $20 Canadian battling Huge Resistance

In Canadian Dollars silver is a hair above $20 again. This is the third time recently it has been in this area. The previous tops on this chart come from the following dates

-May 2010 Silver high was over $20
-December 2009 once again over $20
-March 2008 was over $20

In March 2008 the Canadian Dollar was stronger than the USD. Silver in USA got up to $21.35 where in Canada it was not able to get above it at that point with their dollar currency being more strong. As far as today is concerned, we are having another test of this level which has had two recent tests. The recent bottom on this chart was able to hold the uptrend line and because of this the odds favour a bigger breakout to happen soon. The 200 day moving average has also been support. The pattern also can give us the "Cup and handle formation" which has the February lows forming the cup and the previous low we had made the handle. This is a very bullish formation and its expected breakout seems to be very soon. These are fancy or unfancy names they give to technical analysis. This doesn't mean it will break out to the upside, rather it has a good track record of having historic success.


Silver `Looking Cheap' Lures Investors, Prompting Decline in Ratio to Gold

The ratio of gold to silver dropped to a three-week low after gold’s rally to the highest level in eight weeks prompted some investors to buy the white metal. An ounce of gold bought as little as 64.96 ounces of silver today, the lowest amount since Aug. 5, according to Bloomberg calculations. Silver has outperformed the yellow metal since Aug. 23, gaining 6 percent compared with gold’s 1.4 percent gain, as investors bought the white metal because of its relative cheapness to gold...(Bloomberg)

Gold and Silver Protection From Economic Cancer and Desperation of QE2
History is being made. The American public has never been no nervous, perhaps fearful of something dreadful and imminent. The global monetary system is crumbling. The typical stimulus has failed to jumpstart the USEconomy. The 20 months of near 0% short-term official interest rate has failed to revive the moribund US housing market. The phony FASB accounting rules has failed to accomplish anything except a stay of execution...(Market Oracle)

Why I’m betting on silver by David Morrison
Gold has shot back to prominence as a serious investment asset over the past few years as investors struggle to make sense of the current financial environment. For a growing number of people, gold is one of the few safe havens in uncertain times, particularly now as the debate swings between whether the developed economies are set for a period of Japanese-style deflation, or a dose of post-First World War German hyperinflation...(IBTimes)

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