Silver

[Show-me]

I have felt the same way about the dollar but until the BOE and ECB stop lowering their rates the dollar will appear stronger on the surface. Once they stop lowering rates I believe all hell will break loose by the way of inflation.

[JTH]

I need a opinion.

One dollar index chart, does it look toppy and unable to break out?

I'm looking at the ADX set @ 9

It seems that since Mid-December's upswing, the ADX trend strength has been decreasing. Currently, the ADX is on the weak side. The positive trend (+DI) is decending, while the negitive trend (-DI) is somewhat flat.

This is what I do know.

The previous two uptrends (Aug-Oct & Oct-Nov) were both met with an asending ADX, +DI, with a decending -DI.

This is what I don't know...

Why is the ADX & +DI tracking inversley with the uptrend?

Perhaps that is a sign of toppyness?

[JTH]

Silver's SLV is losing its luster and is not worth chasing at these levels.
Still, it's better than bonds

Attachment 22

[etftalk]

Silver is perking up again, but needs another push to clear resistance and make a higher high.

[JTH]

Silver's SLV gaped down this morning .22 cents.

Attachment 37

[JTH]

Silver's SLV gaped down this morning .22 cents.

Only to gap up today...

Attachment 44

[etftalk]

I hate silver. Stopped out yesterday - straight up since.

[JTH]

I hate silver. Stopped out yesterday - straight up since.

Thing that urked me was how tempting it was to place a limit order, incase it bounced off 11.75 again. At those prices I was willing to be a buyer again. But I was sorta screwed anyways, since I didn't have enough buying power to justify the risk/reward ratio.

[JTH]

Our friend silver had an interesting week. If we get a market downturn next week I wonder what SLV will do?

Here are some different perspectives I'd like to share. These charts are looking at the price performance of Silver, Gold, Energy, Technology, and the Financials during different time frames.

Here are the last 14 trading days starting from the S&P 500's 676.53 March 9th close. While stocks were rocketing up, silver was left behind in the dust, but still turned in a respectable 2.98%
Attachment 76

-------------------------------------------------------------------------

Here is the same chart from the February 9th peak, to the March 6th low (intra-day low of 666.79). As you can see, Silver and Gold turned in over 2%, while the other sectors were dieing a horrible death.
Attachment 77

-------------------------------------------------------------------------

Finally, here is a Year-To-Date chart so we can look at a bigger time frame. Silver (SLV) has turned in an astounding 17.68%

Attachment 78

[XL-entLady]

You've probably all seen this, but just in case. It fits nicely with JTH's chart post below.

Silver ETF: Good Option for Silver Investors

by: Manshu Verma March 28, 2009


"iShares Silver Trust (SLV) is the world’s larget silver ETF backed by physical stock of silver bullion. It trades on the NYSE Arca and is a good option for investors looking to invest in silver by means of an ETF. The sponsor of iShares Silver Trust (SLV) is Barclays Bank (BCS).
Backed by Physical Silver Bullion
As on March 23rd the iShares Silver Trust (SLV) held 8,180.44 tonnes of silver. This stock of silver is stored at SLV’s custodian — JP Morgan Chase (JPM).
Some commodity funds not only hold the underlying commodity, but, on top of that, trade on the futures contracts of that commodity on exchanges like COMEX. SLV doesn’t do this. SLV takes delivery of physical silver, which complies with London Bullion Market Association (LBMA) silver delivery rules.
There are other silver funds which take positions in silver by buying stock of silver mining companies. SLV doesn’t do that either.
Passive Investment Vehicle
This means that SLV is a passive investment vehicle and the price of the fund moves in tandem with silver prices. There are no fancy hedging or other active management techniques used by this silver ETF. The lack of active management means reduced expenses and fees.
SLV Price Movement
Here is a look at how the SLV ETF moved since September 2008. There was a 10:1 split on 21st September, so I am not including the chart which includes prices before that date (click to enlarge).

Silver Mining vs Supply
In the past seven years — silver mining has increased from 591 million ounces in 2000 to 670.6 million ounces in 2007, which is a growth of 13% at a CAGR of about 1.82%
At the same time the total demand has risen from 824 million ounces to 894.5 million ounces, which is an increase of 8.5% at a CAGR of 1.18%



The gap between total demand and total supply is matched by:

• Net Government Sales
• Old Silver Scrap
• Producer Hedging
• Implied Net Investment / Disinvestment

Source: World Silver Survey 2008


Silver Demand Segments
While silver is generally thought of as a precious metal, its industrial use exceeds its use in jewelery and coins. Here is a break-up of 2007 silver usage segments (click to enlarge):

This chart shows that the demand for physical silver is likely to be more stable than other precious metals like gold, which have a large component of discretionary spending built into their demand.
Source: World Silver Survey 2008
Silver Rally
Precious metals like gold and silver are getting increasingly popular because they are seen as effective hedges against stock market downturns. Like gold, silver is considered a good hedge against the stock market, as investors flock to safety in times of uncertainty.
The quantitative easing that the Fed is currently employing is expected to result in massive inflation and fall in the value of dollar. This is another reason precious metals like silver are gaining in popularity and seeing a rally.
Conclusion
The iShares Silver Trust (SLV) ETF is a good option for anyone who wants to invest in silver, but is not interested in holding huge quantities of physical silver. However, the prices of gold and silver have already gone up quite considerably and given the enormous interest in these metals lately — this may just be where the next bubble is forming."



http://seekingalpha.com/article/1282...lver-investors

Lady