Don't Let The Silver (And Gold) Bull Shake You Off

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Gold and Silver Price Chart

Over time, silver's price tends to mirror that of gold.

An Anecdote from One of the Best "Trend Turn Callers" in the Business

Bob Moriarty of 321gold.com has on multiple occasions, demonstrated an unerring sense of timing in regard to intermediate turns in the metals, especially silver.

Understanding that the people who buy and sell them probably have a better finger on the pulse of supply/demand factors than most analysts, he has an open order with one dealer, saying "Somebody's going to want to sell something soon. When they do, call me and I'll be a buyer...

“And sure enough I got a call from a dealer saying "Somebody just sold us some big silver bars; are you a buyer?" And I said 'Yes.' This has happened to me several times over the years and every time, it has marked the low within a few days."

Bob demonstrates he's able to remove his bias and emotions by taking an additional step away from market noise, letting another person's fear alert him that it's time to add to his own holdings.

It's watching the antics of herd-behavior without allowing yourself to become consumed by it. And by the way, these occurrences are repetitive – going much farther back than the infamous South Sea Bubble – and will remain operative and predictable just as far into the future.

Silver's Eventual Trajectory May Be Similar to Bitcoin

This year BTC rose from its cyclical low around $3,500 to $12,000 and then $14,000, where the "experts" expected it to be stopped by strong chart resistance. Instead, in just a few weeks, it powered higher to challenge the all-time high of $20,000 each.

On a smaller scale, silver did something similar when it rose above $20, and instead of spending months backing and filling between $18 and $21, it shot up to just under $30/ounce.

When silver finally decides to begin its next powerful impulse leg to the upside, expect it to keep confounding the technicians as it tears through chart "resistance" levels, just as BTC has been doing.

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