SPDBRNR – Eyes Wide Open
Sports, Politics, Financial Markets, Silver & More

Gold & Silver Breakout

So since my last post Mon night 10/5/09, gold & silver initially broke out to new highs on the oil & dollar news.  Of course the major players denied the story – why alert your enemy?  A major tell to the legitimacy of this precious metal breakout is that they’ve held in the face of denial beutifully, and are now (Wed night 10/7) breaking yet again into new high territory – gold all time high right now $1,053.50, silver still a bargain at 14 month highs of $17.85.  Here’s a link to multiple different time period gold charts from intraday to 10 years.  Look close at the 5 year chart and 2 prior consolidation periods and breakouts.  We are currently at the 3rd breakout point, with a world of fundamentals and momentum that both point to much higher prices ahead.  Then remember that the silver story, largly due to its industrial consumption, variety of uses, and more scarce above ground stocks, is far more compelling than gold. 

As I type this this, the Silver:Gold Ratio is 59.1, its lowest in over a year, but still higher than where it settled during the first 9 mos of 2008 until the Sept madness began.  The ratio ranged from 75 to 80 at the turn of the new year. Incidentally, a 100 oz of silver bullion on EBAY is currently a shade over $1,900.  The days of buying silver for under $20/oz might be coming to a close.

If for no other reason, buy gold & silver for the coolness of the different coin designs…like this that incorporates both metals into one coin.

Advertisements

2 Responses to “Gold & Silver Breakout”

  1. Awesome blog!

    I thought about starting my own blog too but I’m just too lazy so, I guess Ill just have to keep checking yours out.
    LOL,


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: