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Silver

So it looks pretty close to crunch time, to my eye, for the silver price. Whilst I am not an avid, or qualified, chart-reader, even the uninitiated can see from the below that IF we were to see a fall below $26 then the chart goes into 'lost at sea' territory. Whilst I have chosen a longer term chart, the short term one tells the same story … but I, personally, like the odds of less-than-$1 downside to $3 to $8 dollars upside.

Heck, if it all does go south for silver - please be sure to check out the short silver ETC in the Exchange Traded Bullion pages (SSIL) - designed to bring you the inverse daily return of silver. Please also read our ETC risk warning before you get your buying boots on.

 

Silver Fix 2yr - June 2010

 

I found this on a website and by the time I had copied and pasted it, I now cannot find the site again to credit the author, for which I am most sorry:

"A sound protection against financial disasters … is silver. Silver has been used as currency for over 4,000 years and is still universally recognized as being valuable. It is best used as a hedge against monetary catastrophe. This is because in times of economic recession, governments often print more money as a temporary remedy to the deficit, devaluing the currency in the long run ... The Dollar, Euro, and Yen may rise, fall, and even collapse. But an ounce of silver is always an ounce of silver...

Gold

After the intraday 4% rise in gold,noted in my last post on prices, this week saw a 4% fall … taking us to a pretty-much-unchanged gold price for the year to date.

"We believe the slide in gold prices may create an attractive entry point for emerging markets buyers and long-term investors such as the official sector and pension funds, who may be looking to diversify away from the U.S. dollars and into a quality hard asset such as bullion," HSBC said in a note.

You know where to come if you agree. 

Saturday June 23, 2012 by Robin Newbould