I’ve reposted an article below by Gary Christenson of Deviantinvestor.com. He offers compelling evidence that now is the best time 2001 to buy silver.
The price of silver has been crushed during the last four years. Prices are ready to reverse. We will know soon enough after the High-Frequency-Traders have their way with prices for paper silver and gold on the CME. But consider:
Is there anything specific regarding silver, or is it just “hope and change?” Yes!
Daily charts (not shown): Silver hit its low about 2 weeks ago and has weakly rallied since then. Most oscillators show that silver prices are deeply oversold and that momentum has turned upward.
Weekly charts (not shown): Silver prices have closed higher for the last two weeks, and like the daily charts, oscillators are oversold and turning higher.
Anything more? Yes! Long term cycles indicate that silver has finally made a major bottom. I have little faith in short term cycles because prices are so easily manipulated by HF-Traders, but longer cycles are more difficult to manipulate, and more meaningful. When longer cycles align with other confirming evidence, it is significant.
Note the following chart showing monthly silver prices back 25 years to 1990. All major lows in silver prices have been indicated by two long cycles – 82 months and 123 months (82 months times 1.5). The red vertical lines show the 82 month cycles and the green vertical lines show the 123 month cycles. click to enlarge:
You can read the rest of this article here: