Silver Market Update

January 5, 2007 9:30am

Timothy Silvers

            I don't have much time to write, but silver is correcting pretty hard again today. The sentiment in commodities and metals is currently bearish, much of which seems to be related to some dollar strength and a large drop in the crude oil price. Copper is also correcting from it's highs as more people are thinking a recession in the US could lead to a lower demand for base metals and commodities in general in 2007. Goldman Sachs downgraded many oil related companies and other analysts are following the same path.

            I don't think this trend will last too long and I love it when we are handed opportunities to pick up quality assets at value prices. That being said, today may be the day I've been waiting for to start buying silver again. I'm watching to see if it closes below $12.30, which would likely indicate further declines next week. As I mentioned in my 12/17 alert: "Any price around $12 or lower is an excellent reentry point... The absolute bottom I would expect is $11.50, but that is a long shot."

            I'm still sticking to that thinking for now. I'll try to make time to post a more detailed analysis on the website this weekend.

 

God Bless,

Timothy Silvers

 

Disclaimer: This article represents the opinions and personal views of Timothy Silvers and is not intended to be investment advice. If you choose to use this analysis for your personal trading, Timothy Silvers assumes no liability for the direct or indirect losses you may incur due to using this article to make your investment decisions. You are totally and completely responsible for your own investments. At any given time, Timothy Silvers or his friends and relatives may have positions in silver related investments that may or may not follow the recommendations contained in this article. The information in this article may not be completely correct and accurate. Even though Timothy Silvers has done his best to review the content and accuracy of this article, he is in no way liable or responsible for any mistakes or omissions.