The SILVER PRICE is lagging gold, & remains beneath its downtrend line. However, silver has traded into a downward pointing wedge, & wedges generally break out the opposite from the direction they point in. I am beginning to suspect that my black outlook on metals the last two weeks has not been justified. This week could be exciting if silver & gold continue to follow through. I'd like to see silver close comfortably above 1280 tomorrow. Time to buy some silver, too.
Stocks have climbed to the decisive point, the last high at 13,672.32 (4 June). At this roughly 13,700 level they will prove their direction for a long time. Either they will fail and break down, or break out upside by piercing 13,700. Since they've been in a bull move, you have to expect they will break out to the upside.
Sounds strange, coming from me? Not really, because I am not by any means saying that stocks will outperform silver & gold. ON THE CONTRARY. the Dow In Gold Dollars keeps creeping up to G$432, then falling back, creeping up & falling back. It has formed an upward wedge. It is possible that these formations break out to the upside, but most times they break out to the downside. Unless the DiG$ closes above G$436, expect it to break down soon. That means that gold is about to begin outperforming stocks.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
"Buy Silver and Gold Coins at the Best Prices"
To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $1,250.00; silver's primary is up targeting 16:1 gold/silver ratio or $78.13; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.