Thursday, August 23, 2012

Silver price breaks above $30 and now heading to $50-60?

By Peter Cooper from ArabianMoney.net

Silver is always the most volatile of metals in terms of price. Today the silver price has broken through $30 an ounce and that is a significant move in the technical charts.

Earlier in August chartist Herbert Moolman highlighted a pennant pattern in the silver price chart that could have meant either a rise or a fall in the price, see below:


What we have now is the price breakout that confirms the next move in the silver price is going to be up, and given the established high volatility of the silver price it should be a big one. It could well be a new all-time high above $50 and towards the $60 by the end of September target set in the Old Dubai Gold Souk at the start of the year.

Correction over
The long sideways consolidation from the 50 per cent correction from almost $50 in April 2011 seems to be over and silver is resuming its upward march towards regaining the price it last held 32 years ago.

People talk about the S&P 500 index as looking cheap at 13-14 these days but that is nothing by comparison to a commodity that still trades for less than it did three decades ago. Silver is also still cheap in comparison to gold against which it is always benchmarked and gold prices are rising strongly too.

You won’t get many gifts as an investor this autumn but silver is probably going to be one of them.

1 comment:

  1. Silver will be suppressed for sometime. It will only increase in price spectacularly if there will be another major financial event, most likely another stock market crash. If you keep the price suppressed, the bigger the profit the money junkies will make. The money junkies are telling us what silver and gold is worth. Buy extremely cheap then sell extremely expensive.

    Gold is an indicator now that it has monetary value as opposed to being valued as a commodity.
    Silver was tending to be valued as monetary when it hit $50 but has been driven back to commodity value to $30.
    Platinum seems to retain its commodity value. If gold was to have a commodity value now it would be probably half of Platinum, therefore gold should be at $800.

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