I’ve kept my mouth shut about the price action in Silver (AMEX:PSLV) for the past few weeks because there was not much to say in the matter. Price action has been constructive but given the uncertainty in the global environment and the obvious hostility towards silver exhibited by the powers that be anyone adding to their position in these past few months should be given a medal for bravery. Under conditions like these and with an asset as volatile as silver taking or adding to a position during a consolidation period is taking an extraordinary risk with your money.
In a depression cash is king and it makes you brave while debt makes you fearful.
Silver, like Gold (AMEX:GLD), is no one’s debtor, but at a time when staying nimble and liquid with your money is key, it’s fundamentals quickly separate themselves from Gold and make the risk to reward ratio too high. Therefore, in my mind, I was waiting for the confirmation signal of a breakout to discuss the price action in Silver.
Closing on the COMEX (NYSE:CME) at $28.59 per ounce and rallying on the Globex session after that, Silver put in a statement day taking out months-long resistance in the $28.20-$28.30 region. Gold moved up as well to $1622 which is still waiting for a technical breakout above $1633, but today’s session was constructive towards that end.Previous Post » Gold Follows Silver For Once