We took a look at Gold on April 26th when it closed at $1,157. We’ve had a breakout and closed today at $1,165, the high was $1.175. Not bad for a start. Now let’s look at Spot Silver:
There are a couple of things I want you to notice. XAGUSDO is a weekly chart that goes back to the low in 2008. Notice the huge triangle I’ve drawn in. The target on a breakout is $30 an ounce on Silver. The Trade Triangles has us on a monthly sell in January, but a close this month over $18.45 would change that to a buy. The weekly is on a buy and the daily will shift to a buy shortly.
I believe the physical is in short supply and two big banks are massively short the metal. Fireworks could be just ahead.
Full disclosure: I own shares in GDXJ and GRS and the precious metals.
