Thursday, February 28, 2008

Silver closes on $20 with vigor

Just two weeks ago I posted that we seemed to be seeing price daily attacks but we were holding on with some determination, at the same time I bitched the U.S. dollar was holding for no apparent reason, that has all changed.

The U.S. dollar seems to have fallen against every major currency expect the Yen this weak. This is what I was expecting to see when I said the recent strength was unwarranted. With the dollar being beaten by most major currencies metal naturally gained. The best part however is metals have gained in all currencies showing their strength is not against the U.S. dollar but all fiat currencies. Death to paper, yeah precious metals!!!!!

In the last few weeks silver has seen an amazing move sailing from $17 to $18 with relative ease only to go ballistic and make a damn strong move to just short of $20 at the time of this post. Now I'm no chartist so I don't claim to know or even trust the ideas of resistance levels and such especially (when a mania may be manifesting), but I have to think that $20 dollars is going to be a major psychological barrier and if it can be passed with ease that $18 and $19 was, this will point to blue sky and profits.

Have you noticed the silver/gold ratio this week? It shot down to just above 49, the last time we were near 48 was a major correction so for those trade back and forth between silver and gold on the ratio you'd better keep watch it's been moving fast. My target prices for the year would give have given us a ratio of 48. I expected this ratio at a much higher price but ig todays trends hold the of 48 ratio may be hit just short of $21 dollars. This would mean mean if gold hit $1200 we could expect an even lower ratio ratio, say 44/45ish or about $27 dollar silver, we can only hope I was to conservative.

It looks like this is not a year to be timid with at least one major silver expert already having his $18 dollar goal beaten soundly. I guess for a new letter writer being modest and over shooting sells subscriptions better than going long and just missing. Not that I don't respect the guy, Hell I just wish the ads I run even earn me enough to purchase his letter.

There was a couple of big stories this week that sent stocks soaring, my winners so far this week include (see the charts)Golden Tag, Great Panther, Marifil .

Big winners I did not have included Timmins Gold and BCgold

I think will begin to report regulary on my hits and misses on any particular week, as the first week I'm quite glad to have no real dogs to report but I do have an extensive list of "Why the hell are they not responding to metal prices" companies.

Oh well, as weeks go it's not been bad, let's hope for a couple of repeats.


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