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« Volatile silver shakes out the weak hands | Main | The Accumulator Trade 1 Update 24 January 2011 »
Wednesday
Jan262011

A Bumper Day for Silver producers

Silver Table 27 jan 2011.JPG

We'll kick off with a quick look at the table above where we can see that some very nice gains were made today, notably, First Majestic Silver Corporation (FR) up 12.52%, Alexco Resource Corporation (AXU) Up 9.18% and Endeavour Silver Corporation (EXK) Up 7.71%. Many other silver producers also had a good day on the back of a bounce back by silver prices which gained $0.78 or 2.91% to close at $27.59/oz.

Gold prices also joined in the fun gaining $13.30/oz or 1% to close at $1345.40/oz. From a bulls standpoint we need to see gold prices hold onto the $1340.00/oz level for the remainder of this week, a close above this level will prepare the ground for the next leg up. For the bears a test and the penetration of the $1320.00/oz level will bring the shorters back with a gallop. Its important to keep one eye on gold as its big brotherly influence on silver prices is alive and well. However, the silver space is tiny and we could push back to $30.00/oz as quickly as we have slid down to these levels.

This pull back has helped in a way to take the froth out of the speculators chalice and render the technical indicators more favourable to an investor who places great store in the analysis of the charts. One of our irritations was the gap between silver prices and the 200dma, which has now narrowed slightly and become less of a pain to us. Also note the MACD bounced at the '30' level and the STO has turned positive, both from fairly low levels, so there is oceans of room for them to move higher.

silver chart 27 Jan 2011.JPG

Also note that the US dollar traded lower yesterday losing 0.19 or 0.24% to close 77.81 on the USD Index. So much for rousing speeches. We will see the occasional rally from the dollar but overall in 2011 it will sink further and faster than it has to date. This year could be the year that the penny drops with the wider investment community and paper currencies across the globe will have to front up and explain themselves: Sorry, we were just partying! Doesn't really cut it.

We had a fabulous year last year and it would be wishful thinking to imagine that it could happen again, in normal circumstances. These are anything but normal circumstances and it will happen again, so select your partners carefully and prepare to be knocked off your feet.

Shortly we hope to bring you a one to one interview with the Chief Executive Officer of a major silver producer so you will get his views directly in what will be an exclusive for us. It should make a very interesting read, so stay in touch
..............................................................................

Over in the options trading pit we have just closed 3 more winning trades, so we now have 62 winners out of 64 trades, or a 96.87% success rate.


If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.


sk chart Jan 2011.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.


To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

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Reader Comments (2)

My 2 cents FWIW.

PMs will head up for a few days but there will be another downleg. Silver down to $25 or even low 20s. Gold maybe as low as $1220 levels. Then back up the truck.

Dollar crashes 2012.

Pete

January 27, 2011 | Unregistered CommenterPete

Don't speak too soon. Silver is going lower and stocks should follow.

Calton

January 27, 2011 | Unregistered CommenterCarlton

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