Tuesday, September 18, 2007

Weekly gold and silver charts

Notice that gold has again bounced strongly off the 65 week moving average that has acted as support for every decline in this bull. Silver was a little weaker. That's understandable as silver is a very thin market and moves in both directions will be more volatile. However it hasn't taken long for silver to recover and close above the moving average. The average is also again moving up. Now let me point out something. We will eventually surpass the old 1980 highs. However in inflation adjusted terms we still have a long way to go. Simply put that means that gold and to an even greater extent silver are dirt cheap right now. This bull still has a long ways to go yet.