Tuesday, November 06, 2007
Below is a ten year monthly bar chart of silver. It is as of the end of October, so it does not show the highest current silver prices ($15.50-$16) that have broken up through the second major bullish triangular flag of this major bull market in silver.
True, silver broke down through it's original #2 uptrend line, unlike gold's that held. But, its new #2 trend line looks pretty solid. It connected with a high down in the base. Later in this bull market, silver could establish a more upwardly sloping major #3 upward trend line.
Look for silver prices to break up above the top of this current channel first.
When the world's excess inventories get used up, silver prices can get wild. Despite being actual money, it's also an industrial metal that some manufactures must have. They will pay and can pay a lot more for the silver that is not replacable by any other element on the earth because many just need the tiniest of amounts for their products. Remember, silver now a days, is a lot more scarce than gold.
On top of the industrial use, it seems that the demand for silver as money has not seriously kicked in, yet.