• 508 days Will The ECB Continue To Hike Rates?
  • 508 days Forbes: Aramco Remains Largest Company In The Middle East
  • 510 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 910 days Could Crypto Overtake Traditional Investment?
  • 914 days Americans Still Quitting Jobs At Record Pace
  • 916 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 919 days Is The Dollar Too Strong?
  • 920 days Big Tech Disappoints Investors on Earnings Calls
  • 921 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 922 days China Is Quietly Trying To Distance Itself From Russia
  • 923 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 927 days Crypto Investors Won Big In 2021
  • 927 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 928 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 930 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 930 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 934 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 934 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 935 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 937 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Silver Market Update

Originally published March 29th, 2008.

For reasons set out in full in the Gold Market update we are now adopting a more cautious tack with both gold and silver than that expressed in last week's updates, with the steep drop in the Precious Metals over a week ago now being considered to mark the start of a deeper and more prolonged corrective phase.

Although both gold and silver remain within intermediate uptrend channels that did not fail as a result of the plunge, even though gold's trendline was tested, they both broke down from parabolic accelerating uptrends, with silver's failed parabolic uptrend being shown on the 1-year chart here. What normally happens after the failure of such an accelerating uptrend is a lengthy straggling correction, the early stages of which can be violent, as we have just seen, or a flat-out bear market. Thus both gold and silver's intermediate uptrends are expected to fail in due course, with an obvious initial target for the silver correction being the support level in the $15.00 - $15.50 area, not far above its rising 200-day moving average. Silver rallied from a deeply oversold position last week, as predicted, and is now once again vulnerable to a steep decline. Before this occurs we may some further insipid upside action, but this is considered unlikely, so it is thought better to position yourself for another sharp decline.

As set out in the Gold Market update, whether or not the corrective phase in gold and silver morphs into a full blown bear market, will probably depend on whether or not a bear market develops in commodities generally, and that will depend on whether or not powerful deflationary forces continue to be offset by the powerful inflationary forces in the system which are already glaringly obvious. This in turn will depend on the future actions, or perhaps reactions of the Fed and the world's Central Banks. With ominous bearish patterns appearing on many commodity charts and on many stock index charts, as well as on many individual stock charts, caution is the watchword for the immediate future.

 

Back to homepage

Leave a comment

Leave a comment