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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: TrueScouse who wrote (20650)	9/17/2003 7:20:35 PM
From: Little Joe	Read Replies (1) \| Respond to of 39344

The chart tells us very little as to the short term it could go either way. If it clears near term overhead resistance I would see that as very bullish. I have not looked at the backwardization in silver, but it can be a very powerful indictor that there is strong near term physical demand. The best situations occur when the nearest month is trading higher, not only than the next month out, but the next several months and each near month is higher than the next month. e.g. sept 5.12, oct 5.05, nov 5.02, December 5.00. The reason this is so powerful is that there are costs associated with carrying silver over time which are usually priced into the market. When the near term markets trade above the farther out market which has factored in the carrying costs, it often indicates that the cash demand is very strong. In addition to the above this condition has to exist for more than a few days to be a valid indicator. At any rate it is positive in my view. Little joe