Silver still $30 range...

Gold hits a new high, but Silver is down over $1...  Gold is leading Silver at this time as it is seen as a 'flight to safety' and 'real' money.  If problems are seen with the economy going forward, industry will not manufacture as much products that include Silver so demand will be diminished.  So investors sell off the metal and switch to the one that is rising...

Daily chart of Silver from Kitco

Silver spiked down to $37 just before 4pm and bounced right back up.  If you wanted to purchase a equity or commodity and had some influence on the price, wouldn't you want it to sell off first then purchase at a cheaper price?  (That's for the big players)

I continue to dollar cost average into Silver while it is still in the $30 range.  (Bought some again today) It is a definite possibility that you will not see Silver in the $30 range after this coming fall season and into 2012. 

As some guru's have suggested, some may want to transfer most of your savings account fiat currency into hard assets, just keeping enough in your checking account for weekly and monthly expenses.  The dollar going forward will continue to be devalued and inflation will continue to eat away at your purchasing power.  Those that keep dollars in a savings account will slowly loose to inflation over time.

James Turk interviews Eric Sprott on Silver

S&P Downgrade from AAA to AA+

Looks like the market is in for another round of selling on Monday and into this week as S&P downgraded the US Credit rating from AAA to AA+ on Saturday.  Of all times to do it huh?  On a Saturday over the weekend.....   It should be no problem for those in a 401k that have moved their position out of the mutual funds and into cash or another fixed income fund.

As of Sunday evening at 8pm PST, Silver is up and is trading at $40.17 (after last weeks sell off),   Gold is at $1696.xx, just shy of $1700.

I am diversifing the remaining cash that I have into Silver...only keeping enough in my checking to pay bills...

 

2011 should be the last year you will see Silver in the $30 range. (Untill the blowoff crash after the parabolic stage....this will most likely be in a few years) 

Gold Silver Ratio

Gold = $1664
Silver = $38.33

Gold Silver Ratio = 43.43

Daily chart of the Gold Silver Ratio from late February, 2011.  You can clearly see a trading range since the Silver selloff / comex margin increases in early May.  The trading range depicted with the blue lines.  Where might a good entry point for Silver buyers be?  It will most likely be at the upper range with Silver dropping and Gold rising or flat.

The Gold Silver ratio will eventually start dropping and break below 40 again.  When?  It's anyone's guess....but the end of this year is a definite possibility.   If Gold reaches $1700 and the Gold/Silver ratio drops to 35 by year end, Silver would then be at $48.57 an ounce.  The spot price is currently at $38.33 which looks 'cheap' compared to where the price may go by the end of the year. (~26% increase from here if the price were to go to $48 by year end.  How much are people getting with a CD or their Savings account?)

Gold is currently leading the precious metals as it is seen as money.  Silver is lagging and anytime you hear that the economy has problems, Silver will most likely be taking a hit.  Why?  Because it is viewed as an industrial metal and if the economy is bad, industry is bad and there will be less Silver consumed into products...... blah blah blah...... That is how it's viewed, so we have to live with the volatility that is inherent with Silver. 

I purchased Silver today and will continue to accumulate going forward. I'm looking for it to drop lower so I can get more at a lower price, especially before the 4th quarter of this year as I am anticipating the seasonal run up with both Silver and Gold.  I am also looking for solid producing Gold/Silver miners to rally in late Aug/Sept.

New high for Gold...(again)

Looks like more and more people are waking up to the financial mess that essentially the whole 'fiat' would is in. Can't fix debt with more debt and those who know that will prosper with both Gold and Silver.  Those that play the hard assets markets right should be able to pay off most of their debt and be free and clear on their primary home and other real estate investments.  Cars, credit cards, boats should all be able to be paid off with the dollars that you accumulated with this massive bull run in Gold/Silver.

A colorful daily chart of Gold from early February, 2011.  $1675.9 is the new high produced! (More inflation is on the way...)

Gold is currently riding near the upper Bollinger band and may trade sideways for a bit before taking off towards the $1700 area.  The moving averages are in a bullish formation, short term over the mid term and the mid term over the long term. (Not all seen on this chart)

 Daily chart of Silver from early February 2011.  The breakout over the last few weeks continues and the upwards trend towards $50 should be met within the 2011 year.  This time, it should break through and may make a run towards $60 by year end. 

I'm holding American Silver Eagles and do not plan to sell until the Gold/Silver ratio is under 20.  I will most likely start selling in percentages of my physical portfolio.  The Gold/Silver ratio may go down to 10/1, no one really knows.  The last time the Gold/Silver ratio was under 20 (in 1980), it did not stay there for too long.

Swing trading Gold/Silver ETF's and solid miners should be profitable going forward and into the end of the year. 

August Gold new high... Monthly chart (No text, blogger issues)

Eric Sprott interview from Jim Puplava

Jim Puplava interviews Eric Sprott. He talks about the physical Silver supply, the May 1st manipulation/crash and Silver's potential future.  Continue to Jim Puplava's website afterwards as he has many good interviews from leading economists and professional hard asset investors.

Eric Sprott Interview