Price of Silver

sabretoothtigger

Just another quick look at Fres today and its got impressive volatility for a ftse100 stock. Seems to me like its forming a short term inverse double bottom or M formation

Present price is still below float price of 520 which of course did take place in the commodity boom, so seems a reasonable cap to any thoughts of buying into this


Present price was support in jan 08 & resistance in feb 09



14th July - They gained 13% today on the back of market sentiment reversal and chinese demand

RDB

pulled trigger today, if it goes down even more will again.

Do you think this is thie bottom for silver price?

jon3001

Is anyone here using any strategies around the gold:silver ratio?

tradetime

I am a buyer of silver for the long term also. The Gold : Silver ratio is of interest, but Im not sure I would overly adopt any strategy based around it, gold prices have been pushed up dramatically and can fall significantly. I have no particular strategy around this trade, except for the belief that silver prices are low and will be higher 12 -24 months from now, it doesn't however fit with my normal style of trading, so I cannot say how the play will adapt over time.

sabretoothtigger

sabretoothtigger wrote: »

Jun 24, 2009 16:11 NY Time
Gold/XAU Ratio 6.66
Gold/Silver Ratio 67.24
Gold/Platinum Ratio 0.80

Jan 25, 2010 13:48 NY Time
Gold / XAU Ratio 6.93
Gold / Silver Ratio 63.96
Gold / Platinum Ratio 0.71

novazombie wrote: »

Mike Maloney says in his book that the price of silver will be more than gold!

No I dont think so because more silver was mined in the last couple of years then ever before. The rising prices and investment in mining since 2000 has increased supply I think and this applies more to silver then gold simply because it is more common.

The ratio of silver to gold is probably to do with industry vs monetary use. People refer to the original american constitution where this was defined or even the roman empire coin system has a ratio of worth.
Silver supply has increased over the years, I dont think these ratios can be held long term except to say as a reserve currency gold to silver ratio would decrease some probably.

I heard Jim roger sold gold to buy platinum, also a more industrial precious metal. American ETF physical platinum have recently started trading which should create more investment demand at some point

Do you think this is thie bottom for silver price?

no I think lower but the charts indicate this could be a low for the moment if the upward trend can hold. I'm more inclined to go with the chart then just my own opinion so it seems a reasonable time to invest but I would only scale in personally for a long term perspective like tradetime mentions

cloud_dog

jon3001 wrote: »

Is anyone here using any strategies around the gold:silver ratio?

As mentioned previously I don't like the Au/Ag ratio (because you cannot tell if one is set to rise or the other fall) but..... Read a recent article where they felt Au will find the short-term bottom more quickly than Ag.

I emphasise 'short term' because I'm on the fence regarding the possibility of a significant pull back in the Au price (at some point in the future, i.e. this year).

RDB

Who thinks this is the bottom of this dip? Will it go any lower before shooting back up?


I have bought a little more again, but am considering a rather large investment in Silver, I dont want to miss the bottom obviously.


If it goes below 10 pounds an oz then I will pile in, but I dont think it will ever be that cheap ever again, but maybe 10.2 or something will be the bottom, maybe today or tomorrow?

tradetime

Silver is currently holding support of a trendline that began in October 2008. You mention "Investment" which suggests a long term hold, realistically the only thing you need to do is decide whether you believe it is cheap here. , Resistance is just above $19, followed by $21 (sorry don't track the price in Sterling) Current price around $16.7. If support fails here I would expect the low $15. I expect the US$ has more upside, which should pressure the silver price in the short term.

Trying to decide whether the bottom of a "dip" has been reached is really only of any significance to short term traders

6022tivo

So, looking at the prices.. What would you guys say was a fair price to pay for a kilo of fine silver today???

£600??

sabretoothtigger

Have you got a chart of silver in pounds. The problem with predicting the price there is that uk currency adds an extra factor, does the LME deal in silver

The price of gold in Australia fell during 2009 but it was a different matter in usa, etc


Random commentary off a dealer -

yestreday silver made a new monthly low,gold stayed above 1082. today crude inventory will tell who is saying truth.

I have gold in a channel down from here though its gone sideways, time will eventually correct it downwards I believe . Though I cant say the same for silver, it seems unlikely that now will be the time for the ratio to shorten