4 April 2006

Stocking Up On Silver And Gold

Bears' Chat - Welcome: "Stocking Up On Silver And Gold
Curtis Hesler, Professional Timing Service 03.31.06, 9:15 AM ET
Oh my gosh. I think I need to put myself in manacles. I have been watching silver zoom higher over the last week or more, and I have been sitting on my hands. I make it a practice never to chase strength--that is the best way I know of to get into serious trouble in the markets. Nevertheless, it is getting more difficult each day, and although discipline is paramount in a successful investment program, I may need a stronger restraint.
Silver has been the star since last fall when it left the $7.00 level. It marched right up to $11.00 this week and managed a wiggle or two along the way. But over the last three weeks, it has been on a regular rocket ride.
Gold has been no slouch either. After putting in a high at $585 June basis in early February, it has been sliding sideways between $585 per ounce and $540 per ounce. It is pushing the top of its trading band again now, but it hasn't been as big a deal as silver. Silver is where the greatest seduction lies.
Momentum In Mining Shares
The mining shares have been marching to their own drummer during all of this. Although the XAU (Philadelphia Gold and Silver Index) reached a peak a bit earlier than gold at $151.90 on Jan. 31, it dropped about 20% top-to-bottom. Gold has only seen a total retracement of 7.6% since the first of the year, and it is currently closer to its highs than its lows. The mining shares as represented by the XAU have recovered, but they are not threatening their highs just yet.
The exception is in the silver stocks. They have been stronger than the XAU--or gold or silver, for that matter. It sure is tempting to jum"

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