Friday, September 3, 2010

09/03/2010

Silver makes new high for 2010!

Silver in todays Intra day trading managed to rise to $19.93 per troy ounce. The previous high was $19.85 and $20.00 is a hair away for silver. Silver is over extended on the short term time frame and will be due for a consolidation at some point. Only problem is figuring out what that some point will be. Because this is the area of the previous high from May means that the likely hood we encounter resistance is probable does not mean we will. Because the longer term charts I have mentioned is screaming for the breakout, this could very easily happen. If this happens this could cause a little bit of a short squeeze as the shorts whom haven't covered yet may reconsider as well as short term traders whom are shorting because we are at a key resistance area.

GOLD TO SILVER RATIO






With the GLD to SLV ratio chart it is currently around 6.3 to 1 which is at around 63 to 1 on the ratio. The reason for this is because GLD is traded at 1/10 of an ounce of the price of gold, where SLV is around one full ounce. With that being said, many people keep saying that the ratio should be in the 15 to 16 to 1 ratio. This was the historic ratio that silver and gold have been trading with for years. This weeks poll has an overwhelming amount of responses whom agree with this scenario. We all have our opinions on the matter, but at the end it is price that pays and currently the ratio at the 63 area. Webbot, which is an internet prophecy tool says that ratio will fall to parody or par over the next little while. This would be a massive change in our economy. The fundamentals would support this when you observe the real physical tangible uses of each metal as silver is used in several industrial applications with great potential in the solar industry. The last time Silver traded near the historic 16 to 1 historic levels was in 1980. Silver reached a high at $50 and Gold at $800 which was an exact ratio of 16. As we move deeper into this economic collapse, it should be interesting to see if and when this sixteen level gets test again.

ARTICLES

Time to buy silver, a safe-haven Cinderella

Renewed uncertainty over the global economic outlook has revitalised the push into perceived safe-haven assets like gold, but as bullion edges ever closer to record highs, silver has emerged as a cheap alternative...(Financial Post)

How To Trade The Gold/Silver Spread
n my refrigerator, a jar of something called "sandwich spread" has been lurking for weeks. I honestly don't know how it got there, but I suspect one of my Canadian friends who's been invited over for our backyard barbecues may have brought his favorite along and then forgot to export it from our premises...(Green Faucet)

Can Silver Break $20 in September?
It’s that time of year again, folks. Welcome to September.
For all the commentary about gold entering its period of seasonal strength, within the realm of silver much of the attention has been focused on whether the white metal can break $20 on a sustained basis. While much of the recent media attention has been focused on gold setting new all-time highs, silver is nearing a showdown with the key $20 psychological and technical level...(SeekingAlpha)

Silver About To Break Out Big!
Silver is one asset class I do not cover very often, but have been largely bullish on since $6 an ounce many years ago. It can be considered “poor man’s Gold” as they say. I believe Silver is about to stage a pretty large advance based loosely on the Elliott Wave pattern I see unfolding after a 9 odd month consolidation. (Obviously, there are also fundamental fiat currency/debt events worldwide that give it the underlying bull chart pattern)...(StockHouse)

Nuts and Bolts of COMEX Silver Manipulation
The silver market is one of those puzzles that continues to challenge our understanding of free market concepts because it is MASSIVELY volatile for such a stable supply/demand dynamic. When was the last time you heard of a gigantic silver discovery that would drastically increase the supply of silver? Or a new manufacturing technology that will replace the ever increasing demand for industrial silver? Let me save you some time...(SilverSeek)

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