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Silver continues to underperform gold, but I believe that is about to change. It may happen as soon as this week after the Federal Reserve announces its half-hearted effort to control inflation by raising interest rates only .25% or .50%. Based on last Friday’s closing prices, it took 76 ounces of silver to equal theRead more

Leverage is the use of credit or borrowed capital to increase the earning potential of your investment portfolio. But like everything else in finance, higher returns mean higher risk, so leverage is not for everyone. Nevertheless, leverage can be a useful tool for those accepting the risk. If you choose to use it to maximiseRead more

The following silver chart will be familiar to everyone who follows my work. I first presented this pattern in my newsletter about twenty years ago, and I have been tracking it closely ever since, though recently there has been a twist to the way this pattern has developed. I have been describing silver’s long-term chartRead more

Six months ago I wrote that the gold mining stocks were on the runway and ready for take-off. I expected the gold mining stocks from that point to start outperforming gold bullion itself. Since then, however, little has happened.

May 30, 2011 – Bull markets do not move in a straight line, nor do the price of gold and silver.  Their price advances, and then retreats to ‘correct’ the previous advance. For the past four weeks, gold and silver have been going through one of these periodic price corrections. During these corrections, underlying supportRead more

February 14, 2011 – Back in April 2007, I wrote about the three stages that appear in every bull market, and more to the point, that gold was approaching the end of stage one.  Gold back then was still trading around $690, and therefore well below its then record high of $850 reached in JanuaryRead more

February 12, 2011 – In precious metal bull markets, silver outperforms.  Its price climbs at a faster rate than gold’s price.  The reverse happens in bear markets.  Silver’s price drops at a faster rate than gold’s price.  The following chart of the gold/silver ratio illustrates this phenomenon. At the peak of the last precious metalRead more

December 1, 2010 – Both gold and silver demonstrated some spectacular performance yesterday, climbing 1.4% and 3.8% respectively from the previous day’s closing price.  November is the eighth month that gold has risen this year to generate its 26.5% year-to-date appreciation.  Silver has also risen eight months this year, and so far is up aRead more

November 14, 2010 – Silver’s short-term uptrend remains intact, notwithstanding silver’s big price drop on Friday.  The fundamental factors driving silver higher have not changed.  The outlook for silver remains very bullish. There has been no damage to silver’s technical condition.  For example, silver is above its 21-day moving average.  Also, silver remains well aboveRead more

There is nothing scary about these charts, provided you own some physical gold and/or silver.  Both precious metals are in clear uptrends.  Both precious metals are making new highs – record highs for gold and 30-year highs for silver. Charts are one of the important tools that I use when looking at markets.  They provideRead more