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Hey! Look At Silver
Written by Brad Zigler   
February 06, 2009 12:46 PM EST
Real-time Inflation Indicator (per annum): 7.9%

Have you seen silver recently? The metal's taken out some significant overhead resistance. This is not just some technical prattle; silver's rally has developed some legs.

 

London Silver Fix

 London Silver Fix

 

That's not to say that the metal is out of the woods. This morning's higher London fix, however, encouraged silver bulls; the COMEX follow-through was even more supportive.

Silver's been taking cues from both the gold and crude oil markets. The bottoming action in both markets, coupled with the mopping up of silver liquidity in London, has bolstered bullish notions.

Technically, in fact, silver looks better than gold. The gold/silver ratio's turned down to the 71-to-1 level from the lofty 84x multiple reached last fall. A dip below a 71x multiple would be very significant, setting up a test at 67x.

 

Gold/Silver Ratio

 Gold/Silver Ratio

 

Objectives on the upside are $13.37 basis the COMEX March contract while support rests at $11.65.

Next week ought to be very interesting.

 



 

More on this topic (What's this?)
Time to load up on gold and silver?
A Great Opportunity To Top Up On Silver & Gold
Read more on Silver at Wikinvest
 
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Comments (2)

 Friday, 06 February 2009 14:35 EST - Posted by jschulmansr

 
Brad;

Yes, I agree next week will be very interesting for the whole Precious Metals Group and Oil too! Especially in light of the fact that Netanyahu will probably become Isreal's new head of state. It's about to become very exciting... -jschulmansr

 Saturday, 07 February 2009 10:41 EST - Posted by Brad Zigler

 
Thanks for your comments. It seems we're coming up to a test of the basing action in several commodities.

We live in interesting times.



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  About Brad
Brad Zigler's stints as a contributing
editor for the Corporate Communica-
tions Broadcast Network, the Journal
of Indexes, and CRB Trader have set
the stage for his current role as manag-
ing editor of HardAssetsInvestor.com.

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