• 396 days Will The ECB Continue To Hike Rates?
  • 397 days Forbes: Aramco Remains Largest Company In The Middle East
  • 398 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 798 days Could Crypto Overtake Traditional Investment?
  • 803 days Americans Still Quitting Jobs At Record Pace
  • 805 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 808 days Is The Dollar Too Strong?
  • 808 days Big Tech Disappoints Investors on Earnings Calls
  • 809 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 811 days China Is Quietly Trying To Distance Itself From Russia
  • 811 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 815 days Crypto Investors Won Big In 2021
  • 815 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 816 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 818 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 819 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 822 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 823 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 823 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 825 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Silver Market Update

Originally published October 31st, 2010.

We saw a strong rally by silver on Friday that took it to a new closing high, although it did not get above earlier intraday highs. As we can see on our 6-month chart silver did just manage to stay above its uptrend line on the recent reaction, which gives it a chance short-term to break out to new highs, although given the outlook for gold it looks more likely that it will back and fill for a while between the lows of about a week ago and its recent new highs. The development of such a trading range would involve failure of the uptrend shown, which should not lead to the price dropping below the low of about a week ago, although there would be some chance of the price later dropping back towards the rising 50-day moving average.

Silver 6-Month Chart

The action of the past week or so has been pretty much in keeping with what we were expecting, as the prolonged extremely overbought condition called for the reaction which we eventually got. However, the strength late last week was certainly at the upper end of expectations, although what may now happen is that a minor Double Top forms with the mid-October highs leading to the development of a trading range beneath the highs as described in the 1st paragraph. The reaction certainly eased the extremely overbought condition that had developed in silver and has thus opened up the possibility of renewed strength and new highs.

Silver 11-Year Chart

The long-term chart for silver certainly looks most encouraging with the recent strong advance punching the price clear through the resistance near the 2008 highs at last and taking it up into "blue sky country". Like gold, silver is expected to accelerate away to the upside as the inexorable downward spiral of the fiat money system gathers momentum. With tight supply and increasing investment and speculative interest the potential for silver to accelerate away to the upside should not be underestimated.

As usual, much of what is written in the Gold Market update applies equally to silver, to which you are referred.

 

Back to homepage

Leave a comment

Leave a comment