(December 25, 2011)
Silver indicators are at once or twice per decade lows. In every similar case, these conditions have marked excellent long-term buy points for silver (and gold). Silver is currently about $29 (SLV is about $0.75 less) and gold is approximately $1605. These prices don’t look like bargains compared to their 2001 lows, but they definitely are “bargains” compared to earlier in 2011 when we saw highs of $49 in silver and $1923 in gold. I strongly expect that current prices will look low compared to year-end 2012 prices – based on the technical analysis and the velocity of money printing throughout Europe, the UK, and the USA. NOW is a long-term buying opportunity in both gold and silver – especially silver. For the short term, silver will give a strong buy signal on a close $0.30 above the current price, which could be any day this next week.