Where is the SILVER rocket going ?
 

Ok, it's clearly evident that silver is heading upwards to another peak.
Will this be a peak for 2005 or just a smaller one for the year ?
How high ?
What's the annual projection for the noble 'white metal' ???

Well, I'm not a soothsayer in spite of implication by the signature quote below.

However, I do know that historically speaking the ratio for Silver to Gold has always been around 1:39 and it's now at roughly 1:58 so there's still plenty of room for Silver to make a fair balance with gold. It was sitting at 1:63 or so for the past few months which to me was due for another market correction.

Yes, I said 'market correction'. Ok, maybe N. Korea's news helped a bit or maybe it was recent economic reports or the ill-fated weak US greenback. Whatever the trigger point was doesn't matter because it was simply waiting to take off again.

Now, what's interesting is that base metals like Copper & Aluminum are hovering around 5-year highs and nobody pays attention. Silver is at a 1:77 ratio against copper. I think it should be closer to 80-85 but that's just in my Argent Dragon breath.

The main thing is that Silver is going to stay above $6.50 all year long unless some major economic impact happens like a shift towards the exact opposite of a recession.

Anyways, my point is not to speculate but to analyze potential. Now, let's say on average that Gold rises 0.85% per month which is an APR of 10.2% (this is an average). So, with what I mentioned early on the ratio, let's pick a conservative 1:43 since Silver will rise quicker in proportion to Gold.

Gold's projection ---> $420 + 10.2% increase yields a price of $462.84 per ounce.

Silver's projection ---> 1:43 based on Gold's yield leaves Ag with $10.76 per ounce.

This my Silver fellows is a very, very reachable goal. My instinct is that Silver was headed there in 2004, twice but the election took it's toll on the white metal. :tongue:

Re: Where is the SILVER rocket going ?
 

FWIW The Moneychanger can see a move to 40-1 in the Gold/Silver Ratio. I wouldn't get too excited about this move yet. We retraced 50% almost to the penny today of the range from 8.15-6.30. I think we go lower early next week and at least close the gap left from Thursday-Friday trading. The absolute highest I can see Silver going in the near term would be the 7.50 area. Since I hold a load of the Metal it could go to 75 bucks and I would be fine with it but I don't see the situation getting out of control yet. Buy weakness towards 6 bucks.

Re: Where is the SILVER rocket going ?
 

I really believe one of these exact times will be the big lift off of silver where the supplies of silver will hit a brick wall and take off as all the parameters are in place for this to happen at this time or next ---but this could be the beginnings of the commercial signal failure that will ultimately happen in the silver market as we are and have been in a structural deficit of silver for over 10 years ------no one knows the very inside dope on the silver market not even Ted Butler although he is now positioned for the run as he has been for a couple of years