Question of the Week
Question: Dear Mr. Morgan: I have been a member for quite some time now and I appreciate the work you do on the metals, so I wanted to ask you if you do follow Elliott Wave technical analysis? It shows that there is a probability that silver can go as low as the $26 region and if it breaks that support it could target the $22-$23 region. What are your thoughts on that? ~Ioan
Answer: We do look at Elliott Wave, but in using our techniques we have been on top of the major moves so far. One of our members sent us information that EWI had stated the $21 top in silver was it—in other words, the final up move in a continuing bear market! Yet we all know silver moved down from there (we did call that top as well) and found a bottom, only to move up to the $48 level. Can silver move below the $26 level? Yes, but we are more confident all the time that the central banks will continue to feed worthless paper into the system, making silver probably the best investment you can make, and also one of the best performing in real terms. We truly doubt we will see silver below the $26 level but cannot rule it out entirely.
Until next time,