Is the low in the Dollar heating the gold and silver markets?
*Monex.com E-Mail Market Alert, September 11, 2007
* * * Warning . . . or Does Opportunity Knock Thrice? * * *
Last Friday, gold bullion surpassed its highest weekly closing price. As subsequent days show gold comfortable with the $700 milestone, silver has yet to shine.
* Is this a warning or could we be facing the third greatest opportunity in this generational metals bull market?
In 2003, when gold was showing it was comfortable trading in the high three-hundreds, after rising from below $300, silver remained at its $4-5 price level. In late 2003, like a basketball held under water, it nearly doubled to $8.00.
In 2005, silver was below its 400-day moving average as gold showed it was ready to trade comfortably above the $450 milestone. In late 2005, silver, like a ball held under water at below $7, broke above its 400-day moving average and subsequently doubled to the $15 level.
Today in 2007, silver is below its 400-day moving average. Its 400-day moving average basis spot bullion is currently at or about the $12.70 level. Now, in late 2007, as gold shows that it is comfortable with the $700 milestone, the metal’s siblings may be setting the stage for a repeat performance. If so, it only boggles the mind if history repeats itself and silver were to double to its $24 price level.
Making this case even stronger is the present crisis state of the dollar. If you are not aware of the significance of the long-term dollar index chart, contact your Monex Account Representative for a copy. Other proprietary charts are available not found on our website by the general web-public.
If you have yet to build a foundation of knowledge of silver, the best investment is a half-hour of your time to absorb the information on our free DVD, titled “Why Silver Why Now.” See what experts expect . . . and consider how to take advantage of potential market opportunities, because these markets can get away from you quickly.
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.