"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Friday, May 6, 2011

Silver - 8 hour chart update


  1. Thanks Dan. A lot of us view silver as the
    'no brainer' pm of choice. However, looking at
    some long dated kito charts from yr 2000, Gold
    is a 5 bagger - $300 - $1500, but silver now down to being roughly a 6 bagger - $6 to $36 (the last time I dared to look !)I was quite
    suprised about this. Quite a role reversal in metals lately. Whereas silver was 'pushing'
    gold roughly along, gold is now offering its
    hand out to stop silver sliding over the edge!
    Its 100 % proof for beginners that gold is the
    investment, and that silver lives to be traded .

  2. Let's see how it fares on Monday with the next margin increase, even though I think it's already priced in.

    I still think that this paper must collapse for us to see sustained gains in Silver. At this point, I believe that only a documented physical shortage would send it's future price up.

    I mean, someone was selling massively trying to hold 36. Why would they stop now when they've just regained that level?

  3. The dear old silver mule will continue to trudge faithfully up the mountain as nothing has changed fundamentally. They may push it off the odd precipice from time to time but up and up she will trot.
    Anyone with a core position sit tight. Those using play money sure gotta love its volatility. Profit on the ups and profit on the downs. I for one am amazed at how well technically it trades even in the 1 min chart. Yes its volatile but with correct money/ risk management it makes for some.killer profits even with leverage.

  4. Dan: it held for a Friday close

    isn't that significant, in and of itself?

  5. Traded some of my profits in silver for gold today. Will do the same, in a more significant way, next week. The goal is to have equal parts gold/silver--dollar wise. Dan, do you think the beating is over for the miners/jr miners or do see that continuing? There are two jr miners that I dumped last week, couldn't take anymore losses. I want to get back in and the pricing is pretty favorable right now--still down from the levels where I made my exit. What are your thoughts?

  6. MonkeySmoke - hard to say if the shares are done going down yet but I do like the fact that they stayed above Thursday's low on the Friday session with the HUI actually closing a tad higher. I would like to see the HUI push back over 560 again to feel a bit better. Then it could set up a new range trade and perhaps work sideways a bit. We'll see.


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