Silver Editorials & Commentary

What a nutty week for the equities market! The bleeding has not led up with almost 2 weeks of straight selling.

Last week looked and felt like a pivotal week for both stocks and commodities. The past two weeks have had investors and traders in a panic as they try to find safe investments for their money.

It's been an exciting week for traders as volatility levels are through the roof and the broad market is moving up and down like a yoyo.

Last week was amazing for both gold and index traders as gold surged higher and the SP500 tested a key resistance then fell 4% in our favor.

Unless you are a real silver bug or a much studied gold bug, the concept of Silver Thursday will have little meaning for you. Silver Thursday took place on March 27, 1980, and this-coming Saturday marks the thirtieth anniversary of that event.

Last week was nothing special as stock market continued to drift higher on light volume and the Volatility Index (VIX) reaching a new multi year low.

So far this week has been pretty slow. Large cap stocks continue to lag the market which can be observed by looking at the Dow Jones Industrial Average which still has room to move higher before breaking the January high.

Three weeks ago on February 5th, we saw an extremely high level of fear in the market with selling vs. buying volume at a 9:1 ratio. We note that in 2009 this extreme level of fear occurred at the bottom of each significant pullback.

The stock indexes have been trading very choppy making it difficult for swing/trend traders. It's during times like this when seasoned traders rise above the herd of average traders.

The past three weeks have been interesting to watch as the Dow (DIA ETF) has broadened causing traders to be shaken in and out of positions. Commodities have been under pressure as the US dollar has risen.

ETF trading has made it so easy for traders and investors to get maximum exposure to the entire market without the high fees of mutual funds and manager.

The market has had a fantastic week so far for stocks and precious metals. The financial and energy sector are underperforming which is a concern, but we continue to hold our positions and will wait until a reversal to lock in our gains.

Since the market crash in late 2008 we have seen investors favor quality stocks that pay dividends and have steady earnings. Fast growth companies and equities with physical resources like commodities have also done well.

So far this week has been slow in regards to commodity ETF funds. Gold continues to shine while silver refuses to make a move higher.

Everyone is talking about commodities as the place to be in the coming months. I tend to agree, but it is still important to know where each commodity is trading to maximize returns and reduce risk.

A well-known truism is that every investor needs to start with savings. But what if that "savings" gave the investor too much exposure to risk? What investors or people in general need in this financial environment is savings that don't deteriorate.

The past week in gold, silver, oil, natural gas and the broad market wasn't anything to write home about. We are seeing controlled profit taking which is making the market choppy.

Commodities so far this week have not changed much. But I can point out a few things for us to watch Thursday and Friday.

Precious Metals
- Gold GLD fund - Silver SLV Fund - PM Stocks GDX Fund

At this point, I am a little reluctant to state this is the final blast-off and that we will not see gold below US$1,000 ever again. Certainly the percentages are with the precious metals investors and it seems gold has nowhere to go but up.

Commodities have and continue to be a fantastic trading vehicle for those who can stomach volatility. After last year's market crash most commodities pulled back to normal if not lower than normal trading ranges.

Gold, silver and commodities moved higher this past Wednesday on the back of confusing data about the current state of the "green shoots recovery".

The market continues to whipsaw traders out of positions as volatility rises. I have put together a few charts to show you where each of our commodities are trading along with the SPX (SP500 index).

Many have been asking what is going to happen with gold and silver this month, and I maintain it is a tough call. The September month is usually pretty positive for the metals.

It seems more and more people are waking up to the fact that gold and silver are not only moving up but are also much safer investments currently than any other alternative.

Gold is once again the hot commodity, as the price rises to the $1000 per ounce level. This $1000 - $1033 is a technical pivot point for gold. One of two things is going to take place in the coming weeks.

The following is a recent interview l did with Ellis Martin on the first rule of silver investing. As you will read, we got off topic but did cover a great deal of current concerns of investors.

Another crazy week in commodities with precious metals and precious metal stocks surging higher on heavy volume, while natural gas and crude oil move lower. Money seems to be rotating out of energy and into precious metals.

Ellis Martin: Welcome to The Opportunity Show. I'm Ellis Martin. Today we are talking about the possibility of making real money at this time by investing in silver stocks. Joining me is silver guru David Morgan of silver-investor.com.

So far this week we have seen commodities move sideways with traders and investors waiting for the US Dollar to rally or continue dropping, which will trigger the commodities to move.

Recently it was announced on a Chinese news service that silver bullion is now being offered to the Chinese public.

I hope everyone had a great weekend and is now ready for another week of trading. I have put together a few simple charts to show you what we could see with prices in the near term.

The following is an interview I did recently discussing the gold/silver ratio. This topic seems to surface from time to time and Tom Jeffries and I explored it together.

Commodities continue to trade at their pivot points while the pressure rises!

Commodities took a breather last week, while stocks slowly continued their march higher. This week (Monday) commodities moved lower with profit taking and fears of a much larger precious metals and broad market sell off being anticipated in the near future.

In this week's missive I decided to take a clip from the August issue of The Morgan Report and share with readers what others have to say about the silver market.

Begin excerpt…

Last week we saw commodities sell down then put in solid bounce, which allowed us to generate new pivot lows for drawing support trend lines. This is the exact type of price action I have been waiting for.

One of the questions I am asked most frequently is, "Where can I invest in precious metals to maximize returns?" The answer is not as straightforward as one might expect.