Two technical charts to cheer silver investors
Two technical charts to cheer silver investors
Some very interesting reading: CYA:SEPosted on 20 October 2013 with no comments from readers
If we look at the price of silver since 2000 then volatility is the watchword but also amazing upside outperformance. Silver is the best performing commodity over this timescale, albeit from an incredibly low base. The important thing to note is that the upward channel on this chart is still intact:
Unless this chart breaks down entirely – and there is no reason to think that this is about to happen, au contraire – the next trend is sharply upwards. Silver is gold on steroids when prices lift off.
How can we be so sure of that? Well just have a look at the silver:gold price ratio index on the 13-year graph below:
This chart shows how the relative price of the gold and silver shifts over time. Right now we are in a very bad place for silver and the swing back will mean that the silver price advances by a higher percentage than gold to the upside.
Golden years
You can often see this on good days for gold, or you could when we used to have them. Silver would rise by roughly twice the percentage of the gold price’s increase.
Indeed, investing in silver is often seen as the key to leveraging up in precious metals. It’s risky because the multiplier also works in reverse to the downside. Levering up on an investment in silver would bring the highest rewards in a precious metal upcycle and also the highest rewards.
Next month’s ArabianMoney investment newsletter goes back to basics for subscribers (sign-up here) with solid advice on how and where to invest in gold and silver that we can’t include in articles like this.
reprinted from: http://www.arabianmoney.net/gold-silver/2013/10/20/two-technical-charts-to-cheer-silver-investors/
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