Oh No! The Silver Price is Tanking!
As you woke up this morning, you may have felt that way. I will hopefully add some perspective that will leave you feeling better.
Note the following graph of the silver price for the last three years:
Blue Price Support Line: Silver has been unable to penetrate approximately $26.50 since 2010, attempting three times in 2011 and multiple times in 2012. $26.50 has become a very firm foundation and falling below that mark is highly unlikely.
Green Uptrend Line: Silver is still firmly entrenched in an uptrend. Silver has doubled since February 2010 and has increased 8 times since its 2002 low of approximately $4.00
Red Former Resistance Line: Back on March 11th, I wrote about an impending price ‘squeeze’ where the silver price was being forced to break out (click here for article). Silver eventually broke out to the upside.
Blue New Price Resistance Line: Notice how silver has tempted to break out above $35.00 at least four times since 2011? This indicates very firm resistance.
SO, WHAT’S GOING TO HAPPEN NEXT? Not much, at least for now. Like guard rails, resistance at $35.00 on the high end and $26.50 on the low end have silver moving straight ahead. Resistance is always eventually broken. Prices will, without a doubt eventually break through to the upside (even if they break down first).
We are in a precious metals bull market and the trend is up… never go against the trend.
All Things Considered – John’s Commentary:
What to do now? Silver will break out above $35, and when it does it will be decisive. BUY SILVER anywhere between $26.50 and $35.00.
Do not watch the price too closely, or allow greed to set in and try to squeeze out the last dollar. When silver goes to $40 and $50, will have forgotten the exact dollar amount you paid. The MOST IMPORTANT thing will be that you own the silver you wanted.
Later this week I will send you the 3 lowest premium forms of silver to buy based on current demand. Demand for product is what moves the premium % (mark-up) on each individual product. Buy low premium, easily traded and self authenticating bullion – it is that simple.
Quote of the day: “In the long run, the gold price has to go up in relation to paper money. There is no other way. To what price, that depends on the scale of the inflation – and we know that inflation will continue.” – Nicholas L. Deak
