Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Producers Spend a Day in the Sun

Commodities / Gold & Silver Stocks Nov 29, 2011 - 03:35 AM GMT

By: Bob_Kirtley


Best Financial Markets Analysis ArticleSilver producers enjoyed solid gains today with Endeavour Silver Corporation (EXK) up 8.22% followed by Mag Silver Corporation (MVG) up 7.41% and Great Panther Silver Limited (GPL) up 5.99%. Silver prices showed gains of 1.85% to close at $31.85/oz and gold prices also posted impressive gains of 1.53% to close at $1708.70/oz in today's trading session in New York.

Investors eyes however remain focused on the haze that hangs over the European union, especially Italy, where the rumours abound regarding a bailout in the order of 600-800 billion euros from the IMF. Such rumours have an intoxicating effect on the financial markets propelling them higher, along with the mantra that happy days are here again. The markets also have a remarkable ability to ignore the other sovereign states in the eurozone who are also laboring under a tremendous mountain of debt. Its a case of one problem at a time please, that’s all we can handle at the moment. The issuance of more debt is not the cure for debt, but that appears to elude our political masters as they hope to get into the next safe harbor before their cover is blown and they fail to get re-elected. Talking of re-election, that now appears to be a thing of the past in the eurozone as both Greece and Italy have new unelected leaders at the helm. Democracy is no longer fashionable then! Actually its a tad scarey to have 'power by appointment' and we hope that it isn't contagious.

Across the pond there is also an expectation that the United States will follow suit with an 'easing' of some description, especially if the unemployment figures worsen.

Uncertainty and/or the creation of new paper money are good for both gold and silver as this debasement of the major currencies reduces their value as a store of wealth and increases the demand for the precious metals.

Anyway, our strategy remains the same in that we have no intention of investing any of our hard earned cash outwith this market sector. Having physical and gold and silver in ones very own hands is still the best action we can take in these very uncertain times. Secondly, owning some of the quality producers has been a good investment for the initial part of this bull market, however, we are reluctant to increase our exposure to the producers until we get some indication that they can and indeed will rally to higher ground.

At this point we will take a quick look at The Gold Bugs Index, the HUI, as shown below, which also put in a good performance today gaining 2.44% to close at 541.28. We are now looking for the STO to turn and head north as a first indication of a rally in these stocks. The RSI has just turned upwards and has the room to move higher. Overall though, range trading between the '500' level and the '600' level appears to be the order of the day. From this point we still need to see the HUI break through the top of its current range and make new all time highs in order to be convinced that both the gold and silver producers are intent on a rally to much higher ground.

The third part of our strategy is to trade options as they have provided us with good returns when compared to other investment vehicles. As always its your choice and only you know what you are comfortable with, your aversion to risk, your financial targets, etc. So take your time and do as much due diligence as you possibly can in order to establish a tailored strategy that fits your purposes. A word of warning, if we may, don't leave it too long before getting into position as things don't look like improving any time soon.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

DISCLAIMER : Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.
Bob Kirtley Archive

© 2005-2019 - 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