Silver Miners, Gold Miners and the Price of Gold
NEW YORK (TheGoldAndOilGuy.com) -- Silver and silver mining stocks are front and center for investors and active traders. Because of silver's high volatility (large price swings) it naturally attracts a lot of attention.
First you have seasoned investors who are waiting for the right opportunity to get long or short for the next move. Then you have the active traders The Link playing the day to day price swings. Finally you get the gamblers who are salivating over the potential to double their accounts and are riding the commodity on pure emotions (fear and greed). All these things compound the volatility for the investment making it headline news and what everyone wants to be involved in.
The focus of this report is show you where the price of gold, silver and miner stocks are currently trading and what to look for in the coming days/weeks. Below is a chart of gold but silver has a similar pattern and will follow or should I say lead the price of gold in percentage terms because of its volatility.
Gold Weekly Chart
Gold has been testing its long term support level for three weeks. I expect we'll see price start to move quickly sooner than later but there is potential for it to tread water here until the second half of April. We all know the saying "sell in May and go away," and as we get closer to that date we should start to see money flow into the "safe havens" being gold, silver and miners. While this has not happened many times on the charts I am thinking beyond them and of where the masses are likely to flock when stocks lose their luster.Also if you have been following the price of the dollar index you know that it's getting a little overbought and when it starts to correct the falling dollar should help send precious metals higher.
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