I started in the silver pits as an 18-year-old kid back in 1982. For decades, Silver was stuck in a range between $7.50 and $21, even while other metals soared. While Gold moved from $265 to $4,000, and Copper and Palladium saw massive gains, Silver remained artificially suppressed.
» If you missed the initial move, you missed it. Don't "plow" at these levels. «
Silver (daily chart).
Caution in the Metals Sector
While the rally is exciting, you must be careful not to "plow in" at these levels. If you missed the initial move, you missed it. At $117, the volatility is extreme. Every $1 move in Silver represents a $5,000 gain or loss on a single lot. This looks like capitulation—the final "blow-off" top where the last remaining shorts are blasted out.
Gold (daily chart).
Platinum (daily chart).
Looking at the
broader sector, Gold continues to trend within its reliable channels,
and Platinum and Palladium are also moving higher. Copper had a
fantastic rally today as well, moving at $250 per point.
The Next Opportunity: Grains
With Indices, Currencies, and Metals already having gone to the moon, I am looking for what is left. The answer is the Grain Market. Soybeans, Wheat, Corn, and Oats haven't moved yet. As spring planting approaches and other commodities become too expensive, watch for fund managers to rotate their capital into the grain sector.See also: