Anyways... a VERY exciting week in the metals again. Hi to anyone from CGN, if anyone still remembers me :) Drop a comment below to let me know if my notoriety precedes me. Please let me know if you think I'm a lunatic, on to something, or just want to troll... trolling is good...
It's ok either way...
The big news this week that seemed to boost the metals up was the FOMC meeting where Federal Reserve Chairman Ben Bernanke announced he extend interest rates at zero (Zero Interest Rate Policy - ZIRP). This is very inflationary and a good signal that cash will be trash and fuel for the metals to skyrocket.
As for the charts!
Gold:
Silver:
One thing I didn't write on the chart is that the velocity of this increase seems to match the velocity of the big 2011 runnup (T1 and T2 are the same trendline). Is this the start of another massive silver runnup? Maybe... I have a suspicion there will be a fairly strong runnup until March, a Greek default, and a massive crash. Whether that will be something like a runnup to $45 and a crash to $25 remains to be seen... I wouldn't put it outside the realm of possibilities - but I have to reemphasize my personal rule. Silver under the 200 day moving average, it is a GOOD buy regardless of the price. See this link for why:
Gold to Silver Ratio:
Platinum:
Excellent analysis. We miss you at CGN. We hope you are back soon. Keep up the great work.
ReplyDeleteKayakujutsu
Yo Cat! Miss your posts on CGN, keep up the good work!
ReplyDeleteNovascotiaguy
Yea, we remember you on CGN. LOL. How much are you paying for the junk silver ?
ReplyDeleteCheers.
blacksmithden
I only buy junk silver from these guys:
Deletehttp://diverseequities.com/index.php?cat=21
Their supply is a bit dodgy though - once a month or so they send all the junk they have to a recycler. If that's not another good reason to stack junk silver, I don't know what is.