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Silver Price Extremes!

Commodities / Gold and Silver 2014 Nov 07, 2014 - 02:26 PM GMT

By: Investmentscore.com

Commodities

To identify “buying opportunities” in “extreme” situations, we identify historical extreme situations and use them for a benchmark. Provided that a correction occurs in an active bull market, the insights from this kind of analysis can be very helpful.

Most should agree that the credit crisis was a major economic event that pushed nearly all assets down to an extreme low. We have used this kind of extraordinary market action as a comparison for the current commodities correction.






In the above chart we simply measured the percentage drop of the current correction and compared it to the extreme drop back in 2008. Based on this chart it is safe to say that the current correction could be considered extreme.



The above chart illustrates the two extreme corrections relative to the Down Jones Industrial Average. The above lines are a ratio of the silver price divided by the Dow Jones, and we can see that the drop since August 2011 has been much larger than 2008. Using the drop following July 2008 as a benchmark, it appears that selling stocks and buying silver at this time may be a great opportunity.

Here are some other 2008 versus 2011, Dow Jones Industrials comparisons:



In the above chart we can see many examples of the extreme correction since 2011. The current drop from top to bottom (2011-2014) even exceeds the Credit Crunch of 2008 & 2009. When silver hit a low of $8.88 in 2008, it then climbed over the next couple of years to an impressive price of $48.70. Using the past as a guide, it may make sense to sell some Dow Jones Industrial Average (Stocks) and buy some precious metals related investments.

To learn more about our unique insights and to subscribe to our paid or free newsletter please visit us at 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.

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