Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Silver Prices
Silver Price
[Most Recent Quotes from www.kitco.com] Our RSS Feed

Silver Updates by Mail

Enter your email address:

Follow Us on Twitter
« Silver Wheaton Corp to pay Quarterly Dividend of US$0.14 | Main | Trapped Longs in the Gold Market »
Wednesday
Mar202013

Silver Prices Capped by US Dollar

 

As the chart shows silver prices have been trading in a range of approximately $35.00 to the high side and $27.50 at the lower end for over a year now. The oscillations appear to be a lot less volatile of late which is surprising given the financial turmoil in Cyprus. Usually when there is uncertainty in the financial markets gold and silver are seen as safe havens and experience some upward price pressure.

Gold has moved higher to trade at $1610/oz but silver which formed a recent bottom at $28.50, has traded at that level for the last couple of weeks. The 50dma, in a downward move has crossed over the 200dma forming the cross of death which is usually negative for silver prices.

The beneficiary appears to be the US dollar which rose to 83.03 on the US Dollar Index today.

 
There is also the FOMC meeting which occupies traders and investors alike for two days this week, so all eyes have been focused on Ben Bernanke. Any indication that QE was about to be reeled in would have been detrimental to the precious metals sector, but it would also stop the stock market in its tracks as the economy is generally regarded as still being in a fragile state. So we got more of the same with QE continuing at the pace it is now. The creation of more dollars is usually a precursor to inflation, but again silver prices appear to be ignoring this possibility.

It feels as though the summer doldrums have arrived early this year so we could be in for an extended period of 'eerie' quiet before the fall, which on a seasonality basis is usually very positive for both gold and silver prices.

In conclusion the precious metals space is hazy right now so doing nothing until the picture becomes a little clearer may be the way to go.

With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.

Great care will be needed in the selection process in order to generate a reasonable profit and that’s where our new venture begins. ‘Stock Trader’ has begun trading on behalf of ourselves and our much valued subscribers, all exciting stuff which we are really looking forward to, if you wish to join us then please subscribe below;

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

Don’t forget if you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (2)

So My editor
What do you buy if you are buying Gold and Silver Stocks ?

March 21, 2013 | Unregistered CommenterDoug Grant

Hi Doug,

As you know we have refused to buy them for the last two years or so and we are glad that we took that stance. However if we can unearth a few bargains then we might be able to ride them higher, hence the introduction our new Stock trader service.

Have a good one,

Bob K

March 21, 2013 | Registered CommenterSilver Prices

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>