Another silver

Not sure why but silver is starting to interest me again. Been drawing lines on the silver spot chart again and come up with this. Chart shows the US$ price going back to 2005ish.

I know it may seem a bit early to draw that fork on the chart but the lines seem to fit really nicely. I wonder if silver is due for some nice price rises to really break out of this bear trend. Maybe that was the bottom..

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2 thoughts on “Another silver

  1. If you look at the SI from a fractal perspective, it appears to be in a similar position as in ’09, or perhaps even ’04. The pattern this time around, however, is much larger. The top, channel, left-cup pattern we saw in ’08-09 seems to be playing out now on a monthly time frame. If that’s indeed the case, then these are definitely good prices to be buying. As of today, my local dealers are completely sold out of silver bullion, and premiums over spot are at least $2/oz with a 1-2 weeks wait for orders, even on a measly $300 purchase. They all said they have a waiting list of willing buyers for pre-’65 90% coinage who will mop up anything that comes in.

    2010 weekly chart: http://screencast.com/t/JPnMnsZWjw1i

    Current monthly: http://screencast.com/t/srH0Hb1334V

    I think a dip into the shaded region this time around is likely. When I did an analysis of the time for each of the respective sections (top, channel, left-cup) it projects any time between now and late-winter / early-spring 2014 as fair game for THE low.

    The paper price, as we know, can be smashed down into the mid or low teens perhaps, but obviously there is no Real supply at those prices.

    GL.

    1. Thanks for your analysis. I also enjoy the fractal perspective of silver. Also agree another dip probably could happen unfortunately, nothing surprises me anymore. Have learned a lot during this bear trend, been quite painful for me but not going to be shaken out now if it does go lower, although might be tempted to buy the dip.

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