Silver occupies a wonderfully colorful niche in US history, and silver aficionados have a clarity
of purpose and a frankness seldom seen in most other markets. The current levitation in price, the
first dramatic one in over 30 years, has rewarded silver's champions and the assorted traders who
have been in on its rise.
Within the markets however, silver has been one of the Great American crash dummies for over
120 years at least. Because of my fondness for America's colorful silver scoundrels, I hope that
the metal experiences a better fate this time out.
I bought some at $10 and change an oz. in 2009 and sold it at about $17.50. I think there is a good
economic value case for silver at $11-15.00 oz. and enjoy the occasional trade because the silver
guys are a special lot. However, silver at $40 is now 52.5% over its 200 day m/a. Since
seasoned successful traders are reluctant to go long commodities when they exceed their 200
day m/a's by more than 20%, silver is without question majestically overbought on the cusp of
an historic breakout. Drama lies ahead....
Silver
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