ORIGINAL SOURCE
Saturday, September 17, 2011
Silver Chart Update [Trader Dan Norcini Friday, September 16, 2011]
Silver continues to hold very firm at the horizontal red line drawn in on the price chart. Each time it has moved down to this level, a level which I might add is the intersection of TWO important support levels, it has drawn out solid buying and then moved higher. This region is a former congestion zone which seems to attract buyers and forces shorts to cover. The longer this impasse continues, the better for the bulls as it is basically base-building here.
ORIGINAL SOURCE
ORIGINAL SOURCE
Friday, September 16, 2011
Thursday, September 15, 2011
Silver getting ready for a breakout [By JON and DON VIALOUX, Technical Analysis; Financial Post September 14, 2011]
The period of seasonal strength in silver is approaching. How is the seasonal trade lining up this year?
Equityclock.com notes that the period of seasonal strength for silver during the past 20 years has been from Sept. 16 to April 11. The "sweet spot" is from the end of October to the end of February. The trade has been profitable in 14 of the past 16 periods including 10 of the past 10 periods. Average return per period during the past 10 periods was 22.9%.
Seasonality in silver is influenced by an increase in industrial demand during its period of seasonal strength. About 40% of silver is used industrially - in solar batteries, water purification systems, cellphones, circuit boards, plasma televisions and radio frequency indentification devices (RFIDs).
Read more @ ORIGINAL SOURCE
Wednesday, September 14, 2011
Sunday, September 11, 2011
Silver is set for an even greater upward run than gold [cnbusinessnews.com, Sept 11 2011]
Urs Gmuer, asset manager at Dolefin, a Swiss investment advice firm said silver is set for an even greater upward run than gold, with the market due to correct a distortion in its pricing of silver in relation to gold.
Gold and silver currently price at a ratio of around 45:1. However, Gmuer said declining silver output over the last 60 years—as a result of inventory depletion and mine closures—meant silver supplies currently outnumber gold by a ratio of less than 10:1, thus indicating a market correction is due.
Once this occurs, Gmuer said that silver prices would settle at 10 percent to 15 percent of gold. This implies that if gold reaches $6,200 per ounce, silver will peak at between $620 and $930 per ounce.
Gmuer added that markets for all precious metals were benefiting from the surge in demand for commodities, food, and energy from developing countries.
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