Silver

While the stock market is the only game in town - for now - stocks will not continue to out perform all other asset classes indefinitely. Eventually either bonds and gold will rally or stocks will crash very hard. It is one, the other, or even more likely a mixture of both.

No matter what the latest “news” development is for PMs that paints a rosy picture, those in the fundamentalist camp are looking through rose-colored glasses to expect change in the near future. The charts for gold & silver continue to tell a more accurate story that belie all known fundamentals, and the charts shown here depict a market in decline with no apparent end in sight.

Fundamentals are relative, charts are absolute. They accurately reflect all that is going on, regardless of reasoning/motivation and...right now, the charts are letting us know that higher PM prices are unlikely to occur anytime soon. Barring some kind of “overnight surprise” that will shock the markets, odds favor lower prices over higher prices unless and until demand shows up in chart activity.

For the first time in 2013, Silver and the Gold/Silver ratio are breaking above their falling resistance lines and that's a positive for Silver. The last time the Gold/Silver ratio broke resistance in 2010, Silver rallied well over 100% in a matter of months. Are the patterns suggesting another 100% rally in Silver?

Some of the finest and most highly regarded minds in the world of PMs have been saying gold and silver are going higher...[but] the charts have “said” otherwise, and that has been the correct read...The fundamentals may be as bullish as can be [but] the charts are sending a different message.

Using past history of how price responds, it is likely that gold, and silver, could move sideways for another year or two. While this flies in the face of so many current, supposedly "expert", opinions [mine is not based on opinion but, rather, is strictly based on the facts as conveyed by the charts. Take a look and you will see that too!]

In this exclusive interview, Eric Sprott answers questions about the gold and silver market in which he suggests that gold could double in a year and, in the case of silver, could go up even more than that. As for gold and silver equities, he believes gains could be gargantuan, because the equities always double or triple the performance of physical gold. Here's his reasoning.

Below is a perfect example of how the charts timed the movement in the price of gold and silver over the past week. Yes, you CAN time the market as this article clearly demonstrates! When the market “talks,” we listen.]

The window of opportunity to buy physical gold and silver continues to narrow. Like the housing market top was known to be coming, when it came, those who waited too long regretted it. When the bottom for the physical PMs is known as a certainty, those who waited for a “better price” may also regret that decision. It is all about choice.