Tuesday, April 12, 2011

Silver potential pullback levels + Video

Here is video on Silver which covers the shortage, consumption, industrial demand and ratio to Gold.

The current PM markets are pulling back with the overall markets with marginal 1st quarter earnings and Japan's nuclear issues.
I know that most people do not like buying a a stock or other types of investments when it is in a decline, but if you look at all of the pullbacks in Silver since October 2008, they have all been buying opportunities.

Since Silver has been in such demand, the recent pullbacks have been very shallow with the exception of the January 2011 decline. Use a fibonacci tool to determine the pullback levels based on the current rally and you can accumulate positions at each level if you are looking to purchase more to add to your position.

Similar to the fibonacci retracement tool drawn on this chart.  While it's accuracy with the projection on pullback levels are not perfect, it is often very close.

Silver Shortage Video

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