Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Massive Silver Trading Opportunity

Commodities / Gold and Silver 2013 Dec 06, 2013 - 12:10 PM GMT

By: Investmentscore.com

Commodities

Some of the biggest, most profitable trading opportunities only come around once every thirty years or so and we think this may be one of them. Why do we think we have spotted a massive trading opportunity?

  1. We believe a thirty three year overhead resistance level may be broken in the near future and the big money is made in the big trends.
  2. We believe a precedent for this breakout has already been set.
  3. We believe there may be an early "buy signal" in the current setup.

The Precedent: Note the chart and comments below:

Gold Priced in Multiple Currencies 1971 - January 2012 Chart

The above chart measures the price of gold in many currencies and indexes; each one at its long term twenty five plus year breakout price indexed to 100. This makes the gold price and breakout point easy to compare when priced in each currency. You will also notice:

  1. A twenty five plus year resistance line is broken by the price of gold in seven out of the eight currencies.
  2. The price tends to explode higher once the long term, twenty five plus year resistance level was broken.
  3. Not all of the indexes broke out at the same point in time.
  4. A few currencies broke through their long term resistance levels earlier than the others including the price of gold in US dollars. These early breaks turned out to be an early warning signal that the price of gold in most currencies were about to follow.

Gold Priced in Multiple Currencies January 2003 - January 2013 Chart

The above chart simply zooms in on the first chart to help us see:

  1. Each index breaking its long term trend at a different point in time.
  2. Gold priced in the Swedish Kroner breaking out almost two years prior to the Gold/USD. Was the early breakout a signal of what was to come?

Similar Setup: Now let's look at Silver:

Silver Priced in Multiple Currencies 1971-2013 Chart

Let us note the similarities in the Silver chart to the Gold setup:

  1. There is long term resistance ahead of the price of silver except the silver resistance time period is even longer. This may be even more bullish.
  2. The Swedish Kroner and UK Pound indexes have broken resistance ahead of the US index.
  3. The metal priced in US dollars touched resistance and consolidated.
  4. Both metals have been in a major bull market since the early 2000's.

In other words, the multi decade resistance setup that propelled gold from $850 to $1900 may be setting up the same way for silver. To drive home our point and to crystallize our message, please review the next few charts:

Silver Priced in Multiple Currencies January 2003 - October 2013 Chart

Note the similarities between the silver chart above and the setup in gold which resulted in a huge price advance (chart below).

Gold Priced in Multiple Currencies January 1998 - July 2007 Chart

In these charts we can clearly see the metal's priced in two currencies breaking long term resistance in advance of the US dollar price. Then the metals priced in US dollars hit the long term resistance and bounce off. Eventually the US dollar price of gold follows the others to significantly higher levels.

Gold Priced in Multiple Currencies January 1998 - January 2012 Chart

In our opinion the silver and gold bull market is alive and well, and silver may be in for an explosion in the coming months / years. If the price of silver were to follow the setup in gold we would see silver rocket well past $50 an ounce.

However it can be difficult to invest long term if an investor gets caught with significant short term losses and ends up selling in fear. At www.investmentscore.com we try to locate big picture trends and then locate appropriate intermediate term swings to average into and out of positions.

We have written other editorials about other long term resistance levels like this. The end result of the setups mentioned in those articles was explosive price action. If you would like to read more articles, sign up for our free newsletter or learn more about our paid services then please visit www.investmentscore.com.

By Michael Kilback
Investmentscore.com

Investmentscore.com is the home of the Investment Scoring & Timing Newsletter. Through our custom built, Scoring and Timing Charts , we offer a one of a kind perspective on the markets.

Our newsletter service was founded on revolutionary insight yet simple principles. Our contrarian views help us remain focused on locating undervalued assets based on major macro market moves. Instead of comparing a single market to a continuously moving currency, we directly compare multiple major markets to one another. We expect this direct market to market comparison will help us locate the beginning and end of major bull markets and thereby capitalize on the largest, most profitable trades. We pride ourselves on cutting through the "noise" of popular opinion, media hype, investing myths, standard over used analysis tools and other distractions and try to offer a unique, clear perspective for investing.

Disclaimer: No content provided as part of the Investment Score Inc. information constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers, including the staff of Investment Score Inc. or their affiliates will advise you personally concerning the nature, potential, value or suitability or any particular security, portfolio of securities, transaction, investment strategy or other matter.  Investment Score Inc. its officers, directors, employees, affiliates, suppliers, advertisers and agents may or may not own precious metals investments at any given time. To the extent any of the content published as part of the Investment Score Inc. information may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Investment Score Inc. does not claim any of the information provided is complete, absolute and/or exact.  Investment Score Inc. its officers, directors, employees, affiliates, suppliers, advertisers and agents are not qualified investment advisers.   It is recommended investors conduct their own due diligence on any investment including seeking professional advice from a certified investment adviser before entering into any transaction. The performance data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that such calculations are not guaranteed by these sources, the information providers, or any other person or entity, and may not be complete.   From time to time, reference may be made in our information materials to prior articles and opinions we have provided.   These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current.  As markets change continuously, previously provided information and data may not be current and should not be relied upon.

Investmentscore.com Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in