Is the silver bull still with us?

In the past, I’ve made the point that I’m not that keen on trading silver. Trading Silver is to ‘dance with the devil’.

But I never say never. The Right Side is all about looking for ways to make a profit. I’m not fussy about where those opportunities are.

Right now, in this environment, we just can’t ignore precious metals. I normally favour Gold over silver and I’m still holding my long-term gold position.

But silver’s starting to look interesting to me. Since I gave my last warning on silver, the price has tanked. After nearly hitting $50 in April last year it’s had a nasty fall… right back to around $26 just before New Year.

But since then, silver’s put in an impressive 25% rally that could signal the start of a new bull run. It’s up around 10% in just the past week.

When you get a big correction like we did in silver last year, followed by a strong rally, it can be a good sign that the trend has changed. And it strikes me that a near-on 50% retracement followed by a strong showing over the past three weeks could be just what we’re looking for.

Here’s the five-year chart for silver:

As you can see, long-term silver holders are still doing very nicely. But they’ll have suffered some almighty pullbacks along the way.

And it’s these sorts of pullbacks that can offer the perfect opportunities for people wanting to buy into a bull market.

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Tags: price of silver, Silver, silver analysis, silver futures, silver futures prices, silver news, silver price, silver prices, silver spot, spot silver

Posted by Silver Guru on Jan 25 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry