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Well by recent years standard, the price of silver is still cheap compared to gold, although not as much as a month or so ago.

 

 

PS Double-agent I do like your GDP-denominated sig. Very useful info as I read through posts.

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Well by recent years standard, the price of silver is still cheap compared to gold, although not as much as a month or so ago.

 

Interesting plot, thanks! Guess the time period makes sense in terms of the current market, but what's it like over longer time periods?

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Thanks Steve and Chris. Perhaps my TA terminology isn't up to scratch, what I was hoping for was a chart like Steve's NZ$JPY chart from the link, with the 2 red lines for silver/GBP, which is what I have always described as the channel, the other charts are showing the moving averages are they not? I don't find these quite as intuitive. Not to worry I will try and put one together myself, I was just short of time when I posted the other day.

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Thanks Steve and Chris. Perhaps my TA terminology isn't up to scratch, what I was hoping for was a chart like Steve's NZ$JPY chart from the link, with the 2 red lines for silver/GBP, which is what I have always described as the channel, the other charts are showing the moving averages are they not? I don't find these quite as intuitive. Not to worry I will try and put one together myself, I was just short of time when I posted the other day.

 

Sorry, very little time or I would have done one for you.

My reply was a little tongue in cheek. I just thought the take-off ramp was rather funny :D

 

I don't think channels have to be straight ;):D

 

If you are doing it to judge when to buy/sell, I suggest you do it versus several fiat currencies.

 

I am now of the view that the fiat crosses plus the fiat-PM crosses are the best summary of the entire market.

The forex market is after all vastly greater than any market like stocks.

 

That means the SilverGBP price can be judged by the US$EUR etc etc.

 

I look at the workstation and get an overall view of the way things are going.

 

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Unlike gold, the 50mda is still well below the 200mda:

 

http://stockcharts.com/h-sc/ui?s=$SIL...id=p42839489315

 

Just looking at that chart, I think caution on buying might be in order. That's quite some rise.

It's probably due a correction down to maybe 12, before going higher.

Unless all hell breaks loose :unsure:

Just my view.

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On the other hand, silver got knocked down a lot more than gold, and has a long way to go to catch up, so maybe like the huge drops, we should also expect huge rises.

 

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On the other hand, silver got knocked down a lot more than gold, and has a long way to go to catch up, so maybe like the huge drops, we should also expect huge rises.

 

I like this graph, it illustrates your pint very well :D

 

Zeal020609A.gif

 

 

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Thanks Steve, good advice. Silver did get one helluva kick in, I wish I had gone all in several weeks ago now, but I am expecting a correction to some degree, but as you say if all hell breaks loose....

 

BTW - Post no 666, that's 2 x 666's in 2 days, if I see a third today I'm going all in.

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I am prepared to pay spot + 10% on pre 1920 'scrap' (and have been doing so up until a few months ago). Certainly cheaper than spot + VAT + dealer commissions

 

We shall monitor this lot to see the %over spot - http://cgi.ebay.co.uk/SCRAP-SILVER-COINS-9...%3A1|240%3A1318

 

OK this lot closed today, let's assume that it is all .925 (as stated) Total sale price with postage was £75. Therefore, 248g = 8 troy oz x .925= 7.4 ounces of silver.

 

75/7.4 = £10.14 /oz

 

current spot = £9.51/oz

 

So, in answer to your Question GF - But who has pre 1920 at spot?

 

Here is your answer, albeit slightly at a premium but far cheaper* than paying VAT and dealers commissions

 

*accepted there are some disadvantages

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18 Days and Counting - Silver Backwardation Persists in the London Market Place

 

Silver has been in backwardation for the 18 trading days since January 21.
The mid-rate for the longest contracts is now slightly positive.

 

This backwardation is about three times more severe than the mild backwardation than existed from December 8 through December 24 in 2008.

 

We can see that since 2006-2007 where rates were about 4-5%, this state of backwardation is fairly unusual. (The LBMA only lists data back to 2006, but I believe it is a fair comment to say that on an even longer timeline, this is unusual.)

 

Furthermore, starting in roughly June 2008, the 12-month SIFO rate flipped over from being the lowest rate to, in general, the highest.

 

Also, the disparity between the rates seen in 2006-2007 has largely disappeared; the market appears to be treating a trade on silver 12 months later as quite similar to a trade on silver 1 month later.

 

sifojy5.jpg

 

sifozoomqs7.jpg

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Prelim Bullish Price Objective now = $23

 

SharpChartv05ServletDriver-1.png

 

 

 

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That silver spike looks impressive...but why did it end so quickly ? Would have like to buy at peak

This spike is there to teach us not to buy in such a position (given the economy is functioning OK and not Zimbabwe-like). We're far from it (in terms of price). Also I believe that inflation is (1) understated and (2) prone to come back massively in some time.

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That silver spike looks impressive...but why did it end so quickly ? Would have like to buy at peak

Because if it didn't end it would be a plateau ;)

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That silver spike looks impressive...but why did it end so quickly ? Would have like to buy at peak

it didn't end, it just took a breather

 

Prepare for >14 by close of play in US today!!!!

 

[edit: ...even though its currently falling and at 13.8]

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