Tuesday, May 31, 2005

Silver Price Break Out Leads Gold Price

This is a time to buy gold and silver. "The risk/reward ratio based on the fundamentals and technicals is superb. Historic gold investment opportunities of a lifetime don’t come around very often." said Bill Murphey of Lemetropolcafe.com today.

Bill Murphey says, "While gold closed in new low ground for the move and has broken down technically from a chart standpoint, the case builds for gold to move a great deal higher, not lower. Today’s low of $412.70 ought to be it."

The silver price which often leads gold price has already broken out and the gold price won't be too far behind.

30 day silver price, (More silver price history charts at silverprice.org)

The silver price didn't follow the gold price down on Monday. Silver broke out of its very positive bullish wedge/triangle formation and hit $7.50, before some profit taking. That is a rise of over 4% in one day!

If the silver price moves like this when the gold price is going down and the dollar is going up, What will it do when the dollar collapses and the gold price explodes?

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