Me, I'm goiong with Richard Russell on silver
<Silver hit a low of 3.51 back in 1993. From there silver advanced to 6.16 in May of 1995. Down went silver to 4.15 in July 1997. Then came the big rally to 7.40 in February of 1998. From there silver sank to a low of 4.11 in November of 2001.
All of which brings us to the present. Silver, like gold, is now on the move. In July, 2003 the 30-month moving average of silver broke above the 40-month MA of silver. That confirmed, for me, that silver was in a primary bull market.
To take it even closer, back in June of this year silver broke above its 200-day MA. On July 2 silver broke above its 50-day MA. Dec. silver rose to a high of 5.39 on September 25, then corrected sharply lower. Last week Dec. silver surged to a new closing high of 5.41, then backed off. This morning Dec. silver is selling at 5.33.
In the "old days" an ounce of gold would buy 15 ounces of silver. Over the years that changed, and on average since WW II an ounce of gold would buy 35 ounces of silver. But by September 1992 silver was so out of favor that an ounce of gold would buy 92 ounces of silver. The ratio changed drastically and by March of 1998 an ounce of gold would buy 46 ounces of silver.
Taking it to the present, in May of 2003 an ounce of gold would buy a whopping 80 ounces of silver. By July an ounce of gold would buy 67 ounces of silver. This morning one ounce of gold will buy 74.45 ounces of silver. Russell opinion -- silver is too cheap compared with gold, and in turn gold is just plain too cheap -- period.
Those who want to take a stock position in silver at this time might consider the following four stocks -- PAAS, SSRI, HL, CDE. >
You pays your money and you takes your chance. |
