| Last Update October 12. 2008 |
| Current Price and Related Charts... |
|
|
|
||
Both the daily and weekly charts are showing bullish divergences from the continued downtrend in the silver price. Both are showing candlestick tails at the final low showing price rejection and nonconfirmation in the RSI in the strength of the downtrend. We are also near the middle of the month, often time at which the price reverses its present course. Collectively these strongly point to price exhaustion and probable trend reversal. Also these prices being set in the futures market are showing little correspondence in the market (street) price of the metals, with very little small denominations of silver (1 ounce) available. The futures market setting the spot price is not reflecting reality. I am saying that the difference between the 'street price' and the futures market may be the first signs of impending default on the physical level, even before it shows up in the basis of the futures market. Buy physical silver. Silver hit 9.40 an ounce on Friday. It will be interesting to see if my prediction of a short lived existence at that level (below 10) will prove accurate. Extraordinary times... |
All charts courtesy of Stockcharts.com
|
|
Silver 200 MA is 11.90... This is the bottom - This chart shows multiple bottoming indications near long term support. There may be a few days of indecision and short down runs, but things are at such an extreme, continued weakness is unlikely. Markets are self balancing. Fear will be replaced by greed and vice versa. Fear is at an all time high and has brought us these depressed values. Ask yourself, is silver going to go to zero; fear will tell you so. You are currently looking at the second best financial value for holding purchasing power selling at an extreme discount as the next financial value to get destroyed will be the US Dollar. I repeat that my opinion is still that the silver price is currently looking for a base in physical demand, as is gold. That is the point at which paper trading games become irrelevant in terms of any further selling. I find it interesting in this regard that Kitco raised it's bid (purchasing price) a couple of weeks ago on silver maples and eagles "to reflect current strong demand". I read that as having trouble meeting (delivery) physical demand, while trying to honor the (paper set) spot price. Silver, the queen of volatility, continues to exhibit it's temperament with little regard to underlying and opaque fundamentals. It is a small market and can be whipped around like the end of a daisy chain. Only investor demand or sudden lack thereof can affect a market as we are witnessing. Expect more...
|
||
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_2a.gif)
