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If someone were manipulating the silver market, you would see exactly what has actually occurred in silver over the past several days. To manipulate the price you would use your buying power and accumulate long positions until you force silver above resistance in the high $18.40s and thereby trigger all the buy-stops sitting there, includingRead more

The accumulation pattern on the above chart is nearly complete. All silver needs now is one last push above the neckline around $20. As I noted back on April 1st, silver looks ready to soar once that key level is hurdled.

In presenting my outlook for 2010 I said: “We need to start thinking about silver hurdling above $50.” Noting that this event was only a 20% probability in my view for 2010, I went on to add that “this important event – which is unimaginable to many – will I expect happen in 2011.”

May 22, 2010 – Silver is inching closer to its long-awaited upside breakout.  The huge accumulation pattern that silver has been building over the past three years is almost complete, as can be seen on the following chart. I noted in my last commentary that silver looks ready to soar and more to the point,Read more

April 12, 2010 – On August 16, 1999, I recounted how legendary traders Jim Fisk and Jay Gould had profited handsomely from a massive short squeeze in gold 130 years earlier.  The opportunity they took advantage of arose because of the ongoing monetary turmoil of their day arising from the so-called “greenback”, the irredeemable fiatRead more

Every once in a great while, the market offers a unique opportunity to buy precious metals ‘on the cheap’. I believe today is one of those moments.

Silver dropped into our buying area, but silver did not close below the level needed to trigger my buy recommendation. I think that we will get one more chance to buy on a dip toward support.

There is an important Comex option expiry on August 26th for silver, and then expiry for silver over-the-counter options will end the following day.

I noted in the last commentary, the importance of resistance for the gold/silver ratio at 69. I even drew a red horizontal line at that level, which can be seen again on the accompanying chart. I also warned: “We simply have to stay alert for the possibility of a deeper correction.”

Silver (and gold) have been pushed into an extremely oversold condition. Silver, for example, has dropped on 7 of the last 9 trading days, declining 10.5% during this period. That is extreme selling pressure.

It has taken a lot of patience, but the gold/silver ratio finally sliced through support at the 68-69 area. The ratio has clearly broken down, meaning that silver is now outperforming gold.

Silver has rallied above its 200-day moving average. It is now contending with resistance at the horizontal red line drawn at $15, which is a dividing line between overhead resistance and underlying support.