Friday, December 3, 2010

Silver Dec 3rd, 2010

Silver is on the move to another major bull trend going into the end of the 2010 year with a close on Friday at $29.24, a few cents short of the previous high a few weeks ago.  The MACD Histogram is trending up and it looks like the $30 level will be met next week. The way Silver is moving, it may pierce right through the even number 30 level with little resistance, especially if the institutions that are short muster up the nerves to buy back at these levels.

Silver is still undervalued when you base it on Golds run over the past 2 years.  In 1980, gold hit $850 an ounce and Silver hit a high of $50, partially due to the Hunt brothers attempt to corner the market.  In any case, that was the all time high.  Gold has surpassed the $850 level in 2008 and Silver has not even reached $30 in 2010.  Talk about a discount and deal..... Still a bargain at these prices, especially when it's going to double from here.

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