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Silver Price Extremes!

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Published : November 07th, 2014
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Category : Gold and Silver

To identify "buying opportunities" in "extreme" situations, we identify historical extreme situations and use them for a benchmark. Provided that a correction occurs in an active bull market, the insights from this kind of analysis can be very helpful.

Most should agree that the credit crisis was a major economic event that pushed nearly all assets down to an extreme low. We have used this kind of extraordinary market action as a comparison for the current commodities correction.

24hGold - Silver Price Extreme...

In the above chart we simply measured the percentage drop of the current correction and compared it to the extreme drop back in 2008. Based on this chart it is safe to say that the current correction could be considered extreme.

24hGold - Silver Price Extreme...

The above chart illustrates the two extreme corrections relative to the Down Jones Industrial Average. The above lines are a ratio of the silver price divided by the Dow Jones, and we can see that the drop since August 2011 has been much larger than 2008. Using the drop following July 2008 as a benchmark, it appears that selling stocks and buying silver at this time may be a great opportunity.

Here are some other 2008 versus 2011, Dow Jones Industrials comparisons:

24hGold - Silver Price Extreme...

In the above chart we can see many examples of the extreme correction since 2011. The current drop from top to bottom (2011-2014) even exceeds the Credit Crunch of 2008 & 2009. When silver hit a low of $8.88 in 2008, it then climbed over the next couple of years to an impressive price of $48.70. Using the past as a guide, it may make sense to sell some Dow Jones Industrial Average (Stocks) and buy some precious metals related investments.

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Michel Kilbach is the President and Editor or www.investmentscore.com, an online publication designed to show investors how to make profitable entry and exit trading decisions in high growth potential investments. Investmentscore uses a unique scoring system as a visual guide to assist investors in making lower risk / higher reward trades.
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http://gold-wars.com/?p=522 - a very interesting analysis of how to position yourself for a possible rise over the next couple of years.
Latest comment posted for this article
http://gold-wars.com/?p=522 - a very interesting analysis of how to position yourself for a possible rise over the next couple of years. Read more
M. - 11/9/2014 at 11:58 PM GMT
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