Thursday, November 8, 2012

Let's Do the Math

Basically what you see below is the current CRIMEX Silver chart of Spot Silver
with a typical Linear Regression Trend formed on top of it.    I have picked TWO critical points with Blue Arrows, one, bouncing off the bottom line ( indeed, bouncing off the Lower Bollinger Band as well) and the current, seeming to want to vault over the  20 DMA.  I use the 20 DMA ( thin dashed blue line- get it, thin blue line?) as a trip wire for moving higher. It is also the mid-band of the Bollinger set up ( using default values), and therefore sets up a re-touch of the UPPER Bollinger Band as well which sits at 34, but will move higher with each day that Silver moves higher.  If you applied current dynamics similar to the last move, that point could be $6 higher than where the Top Band sits today.   That to me, would be the first installment on the way to $60.

   My estimate of U$D 60 as the next logical leg is supported by this Point & Figure chart which is silent as to date, but given the time necessary to form, could indicate up to 2 years to achieve it, although much, much earlier is as well possible.

   In this way, by pounding SILVER so hard on the way down, they created a Quadruple Bottom @ 26, which will be exceedingly difficult to break down due to the massively recurring demand for physical silver as the supply of deliverable physical silver shrinks.
 Whomever pounded Silver that low, Hung themselves with a Silver Rope.

Everyone Like GOLD

Does this need any comment ?

*footnote - this is the Royal Canadian Mint's Gold Inventory, held in Reserve in Ottawa, Ontario, Canada, wherein the owners of the ETR's carry the cost and risk of this inventory and may present their certificates to receive physical gold.  NOTE the premium associated with being able to obtain real, certified, good delivery gold, that being $1880 Cdn @ oz, vs 1714 USD for paper gold.