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September 3, 2009 / Jeb

Silver (SLV) Breakout, Undervalued Compared to Gold

I have had several emails from subscribers concerning silver and my chart analysis.  I am quite bullish on silver and I have personally added onto some of my silver mining positions the past several days as I feel we could see an extremely volatile move upward in the silver price.  slv

When gold made its move above a $1000 an ounce in March of 2008 silver was outperforming gold and likewise during the deleveraging of the credit crisis silver underperformed gold.  Now that gold is hitting new highs I believe the percentage gains in silver could be much greater than gold.

I also wanted to show the special diamond formation which I highlighted in the chart.  The unique characteristic of silver is its volatility.  A diamond formation demonstrates the ebb and flow of excitement of the buyers and sellers.  Then the excitement wanes before the pattern is resolved.  Breakouts from diamonds is a trader’s best present.

slvAs you can see from the point and figure that a break of the resistance downtrend line and the ascending triple top breakout leads me to believe that demand is outpacing supply.  I have been adding positions in select small cap silver mining stocks.



Leave a Comment
  1. lou / Sep 6 2009 11:05 am

    what silver stocks are you buying besides etf slv?

  2. LOU / Sep 9 2009 6:46 pm


    • Anticipate Opportunities / Sep 9 2009 8:57 pm

      Lou, I will send a note to subscribers in the next few days.

  3. LOU / Sep 9 2009 10:36 pm

    thanks !

  4. lou / Sep 14 2009 11:26 am

    its 9-14 now and no new note to subscribers…… when will it be sent to subscribers ?

    • Anticipate Opportunities / Sep 14 2009 4:08 pm

      I usually post when I feel it is the most opportune time to get in.

  5. lou / Sep 14 2009 5:03 pm

    EAGERLY waiting … thanks for all your help…. this is definately a lesson in patience


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