Home page: www.silverinstitute.org
The long-term picture
After hitting a multi-year low in November of last year around $ 4/oz, the silver price moved into an up-trend, much in sympathy with the gold price. Contrary to the gold price, the silver price fell out of its up-trend last summer but found support above the low of last November around $ 4.25.
The silver price has established a double-bottom from which level it is trending higher again, signally that a major turn-around has indeed been established.
The medium-term picture
Medium-term, it is clearly visible when the silver price broke out of its up-trend at the end of July and then bottomed in October. The minor down-trend has however given way to a new up-trend.
The short-term picture
The short-term trend is UP. It is pushing against the minor resistance zone at $ 4.70. Once it succeeds to overcome this level, weeks or months to succeed, the road is clear to test the resistance at $ 5.
How to participate in the unfolding bull-market in silver:
Fundamental Considerations
Due to the fact that silver Demand has surpassed Supply for many years, "Implied Net Disinvestment" has fallen over the years - a trend, if it continues, will inevitably lead to higher silver prices.
Investment demand will of course play an important role and the bull trend in gold may well spread to other precious metals.
Mankind's timeless fascination with silver stretches back 6,000 years. As early as 700 B.C., the Mesopotamian merchants used silver as a form of exchange. Later, many other civilizations also came to recognize the inherent value of silver as a trading metal.
The ancient Greeks minted the drachma, which contained 1/8th ounce of silver; and in Rome, the basic coin was the denarius, weighing 1/7th ounce. And let's not forget the English shilling "sterling," originally denoting a specific weight of silver, which has come to mean excellence.
Today, millions of people throughout the world recognise silver's intrinsic value and have made it popular as an affordable investment.
The following recommendations were valid at the time of writing, viz. at
and not necessarily when you happen to read them.
Peter Zihlmann
www.pzim.com
or email to investment@pzim.com
November 18, 2002