Time for “Plan B” on Silver

Silver finally hit fresh highs on Thursday, and I am now forced to pull out “Plan B” on re-establishing a position in the precious metal. I had expected the “cooling off” period to end with a retest of the 200-day moving average (DMA) and an opportunity to scale back into silver at my own, leisurely … Read more

Dollar Headed for Critical Support Again

I did not think the dollar would test the critical multi-year support line this soon. I thought the prospects for an economic recovery that is looking stronger than in competing developed economies would be sufficient to give the dollar a helping hand up despite the Federal Reserve’s best attempts to keep grinding the currency into … Read more

Silver and Gold Continue to Cool Off

The “cooling off” of silver and gold has unfolded very slowly over several months. On Thursday, this process entered yet another phase. This time, silver made a clean and strong break below its 50-day moving average (DMA). Silver even made its first lower low since the latest rally began in late summer. Gold has spent … Read more

Gold and Silver Break 4-Month Old Primary Uptrends

The cooling process for gold and silver has moved slowly and deliberately. The first step featured a fight through parabolic upswings, especially for silver. The next step finally seems underway with the first break of primary (short-term) uptrends. Gold closed below its 50-day moving average (DMA) for the first time since August. Silver closed below … Read more

Synchronous Highs: Gold, Silver, and the S&P 500

The week ended with the S&P 500, SLV (a silver ETF), and GLD (a gold ETF) all approaching former 52-week highs. The U.S. dollar dropped 1.3% on Friday, decisively failing at resistance at its 200-day moving average (DMA) and putting an exclamation point on the week’s action. The S&P 500 broke through its last battle … Read more

Looking for Silver’s Higher Margin Requirements to Create A “Cooling Off” Period

A surprise increase in margin requirements after the close of business November 10th apparently contributed to the climactic end to silver’s parabolic move on Tuesday. This also explains why gold’s fade was not nearly as bad a silver’s. Details are available in the following references in order of publication: CNBC (Tues): “CME Taps the Brakes … Read more

Now THAT’S A Parabolic Move – Silver and Gold Get Tipsy

I was about a month premature and about 19% in missed gains when I flagged the potential start of a parabolic move in silver. Or perhaps my definition of a parabolic move should have been more expansive. Either way, silver’s behavior over the past four trading days definitely has taken on the tipsy look of … Read more

Gold and Silver “Almost” Go Parabolic As Currency Wars Heat Up

Talk of currency wars have heated up as several events have converged to make the public increasingly aware of the on-going competitive devaluations around the globe. The increasing clamor came ahead of an IMF meeting Thursday and a G7 meeting this weekend where the topic of global trade and currency rates are hot topics. It … Read more

SLV – Anatomy of a Healthy Rally

In mid-May I tried to make a case for buying silver as a complement to holdings in gold. At the time, the gold/silver ratio looked ready to break lower and provide silver some lasting out-performance. Instead, silver peaked for the rest of the summer and gold regained its edge. Over 4 months later, the gold/silver … Read more

Gold Is Good, But Do Not Forget Silver

In December, Bernanke observed that gold prices reflected general commodity prices and did not indicate rising inflation expectations (in the U.S.). As gold makes new all-time highs, it is now outpacing many other commodities. Many commodities have declined sharply in recent weeks due to fears about the sustainability of global growth. Gold has diverged due … Read more