Heres a silver update. Just like gold, silver is being smashed down, in fact even more so when you consider the gold silver ratio is near 70 at the moment. In a world of unchecked central bank money creation with trillions of dollars sloshing around the system unbelievably some force is continuing pressing silver price down, while the stock market rages to ever higher highs. Yay a recovery! The economy is fixed! Lets celebrate by getting into more debt, buy a holiday, buy a new car. Yay.
Oops sorry nearly got caught up in the keynsian utopian central planned collectivist dream their for a second. Silver, it is almost below cost of mining in fact.
I often talk about rock solid support, will it be broken this time as we approach what might be a quadruple bottom? Who knows in this bizzare world, but I think unlikely however I’ll be very eager to buy more if it does. How cheap can it possibly go in this environment ?
Heres a chart I wanted to share which shows price of silver since the bull market began on log price scale, versus US ‘paper’ dollars.
As you can see we are looking for support on a trendline which was last hit on the bottom of the crash in 2008. How will silver fare this time. I exect a nice bounce starting soon. Below that there is horizontal support which bears have failed to penetrate. Maybe the bullion banks will try a gargantuan naked sale of paper silver on the comex to try and get below this technical area. Good luck to them. I quite fancy some even cheaper silver just before the economy falls apart.