Gold and Silver Break Key Resistance Levels

Originally posted by BenIndaSun

Gold and Silver Break Key Resistance Levels

www.midasletter.com

Silver prices were climbing 31 cents to $30.85, having broken through their $30.50 resistance area

Inflation data was leading the precious metals higher Tuesday. The U.K. reported that January’s Consumer Price Index rose 4% from 3.7% in December. China reported an inflation reading of 4.9%, higher that 4.6% for December

Gold and silver thrive in negative real interest rate environments,as the local currency is worth less and the precious metals become a more appealing place to store your wealth

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Resistance levels, lol, bull#! It's all bull# and totally unscientific.

Before the resistance level of $30.50 there was a resistance level of $30.44 and it was quoted as THE resistance level while things remained stable, then!!! Oh my god, the resistance level has been broken.
New resistance level of $30.48. ETC

What the hell are we talking about?

Now, if you told me: $30.50 is a resistance level, because after it is crossed, people will start substituting silver in the electronic resistances for copper, then I would say good job.

Sorry for the pissed off tone. Please explain if I'm mistaken.

Near term Resistance levels yes but we are still below the highs of the move (well off them in the case of gold but near the highs again in silver). Chances are this is a B wave of an ABC (down) correction.

I think we are seeing stabilization in the gold and precious metals markets.

Gold and gold stocks are very volatile. They have seen many corrections of 15 to 20 percent or greater throughout the course of the year.

We should note that with so much volatility in the currency markets and with hedge funds unwinding their euro short, that gold is trading long. Therefore, I do not think gold will fall much in price even if the dollar rallies.

A lot of momentum-based hedge funds jumped into the gold market near the end of the move higher last year, and they are being “picked off” now, meaning they are slowly selling out slowly.

There was even one story about a South African hedge fund manager who had a small $10 million fund and was using that to control more than $800 million in gold futures! This guy has been forced to sell during the recent decline.

So we have to work through people like that. However, the long -term uptrend in gold is still intact

You know.... It's not and either/or scenario. Buy silver now, cash in when it gets up enough for you, buy durable goods with the cash.

Duh. And hold onto a few silver dimes to buy yourself out of a jam should the time come.

Stop being myopic about the issue. They're all important components of survival.

I do not think most people are listening because they expect to see a great big inflationary effect in the market. Yet this constant rise in all things we buy and Worth for that matter, has been a slow, and painful rise and decline.

I still do not quite understand the precious metal notes in the markets, when the imaginary debt notes become worthless so will those pieces of paper you have saying you have some silver.


Unless your buying actual silver and gold Material I would not waste my time.



I also think when it all crashes down more will be reliant on the barter system more then peices of rocks.


Its just going to be a long slow decomposition of a failure.

by the time people actually start saying hay wait a minute, the disguise will have done its job, and I dunno the new great idea of slavery and control will be in effect. Bread lines and stuff..

You can laugh all you want, but you need to have a hedge if you want to live.


Am I wrong?

reply to post by wheels


Why not hedge by buying arable land? I dont understand why the advice is to buy gold at an all time high, especially when you dont have physical custody of the gold in many cases, when you can buy land at a damn good price.

Both can put food in your kids bellies, and one will do so for a long, long time.

reply to post by Bicent76


I would hope it is understood here on ATS that when people say to buy silver or gold they mean the real tangible stuff, not the paper. That's what I hear anyway.

reply to post by Illusionsaregrander


agreed, land is a very good investment.

Heck your not a man, until you own land.

bah, market commodities crap.

the markets are the reason why we get ourselves in this mess in the first place, not to mention the to big to fail businesses as well.

not to mention idiotic lawyers/politicians that think they are business men and women, and think they can run the economy by pumping tax dollars that we stopped paying the government years ago, now its just printed imaginary peices of paper backed by our guns and nukes. Errr oops sorry ranting.

Land is a good investment indeed. rather have land then silver or gold.

This thread was started 2/15/11 with the OP saying silver broke through the $30.50 resistance level to go to $30.85.

This is 2 days later and silver right at this point in time is $31.78 That is a 2.9% increase in 2 days!

Silver last year went up 82%, while gold went up 30%.

Nuff said?

Well Well...Gold breaks above $1,400. highest since December; Is the trend back on???

Silver is now 33.93...

It will be interesting to see what happens to PMs tomorrow, as today is a trading holiday in the US. Will the rise continue, or will we see the normal pattern of massive manipulation attempt to push today's highs back down? Watch the markets at 10AM EST tomorrow... there will be jump in either direction for sure.

reply to post by larphillips

Whatever happens on Tuesday, the trend is still up. I figure it will be Silver-$60 by July.
If you have Trillions of worthless paper chasing a finite amount of precious metal, the trend HAS to be up.
check out bestmetalresearch for more info

Guess I should post about silver more often. Since it was reported a key resistance level was broken, in a matter of days silver has risen almost 4$ per ounce, or about 13% higher.

It's risky making predictions, but there's no reason to think silver won't continue to increase this year.

With the high price this might be a bad time to buy and better just to watch what you have become worth more dollars, but better to buy now than when it's 50$ an ounce.

Go silver!

I own some gold coins and and some bags of silver coins (99% vintage dimes-dollars) for barter however I buy/sell gold mining stocks & etf's in order to make money to buy more physical down the road. Also on the forex market (currency) I follow the commodities countries ie Canada, Australia, New Zealand etc.

We all know that much of the world’s oil supply comes from the Middle East and North Africa, so any tensions there could lead to spikes in prices. Higher oil prices are inflationary, and gold is a hedge against inflation and political instability.
I look at gold as a sort of insurance. When most assets will drop in price, gold will rise in price as people flee for safety. This is why I own gold — it is a way of protecting myself against instability.
However, I must also not get caught up in geo-political happenings or let these types of events distract from my trading. Part of my philosophy is to buy gold stocks on weakness. Therefore, I am not going to chase gold or gold stocks as they spike to over $1,400 an ounce. However, I might look at selling some positions into this spike in the coming days. and look to buy again during a pull back.

Originally posted by Illusionsaregrander
reply to post by wheels

 

Why not hedge by buying arable land?

I like land but it's not a very good investment for a SHTF scenerio. No one will respect your land rights in such a case and you can't exactly tuck 40 acres into your back pocket if you need to get out of dodge (and you can't hide it).

reply to post by SevenBeans

It's true no one will respect your land rights, but owning the land outright will at least give you the cover of having right on your side. I know it isn't much, but it's better than trying to claim a moral high ground if your moving in on someone else's land.
If you have to buy one or the other buy Silver now and land later.
If you can, buy both now. But, above all else get out of debt.

Silver is up another dollar this morning, $35.35/oz.

reply to post by SevenBeans


Also after the resistance level was broken, gold reached it's new record high for closing price closing at 1,430 $.



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