Sunday, January 28, 2007

Issue 2 and a new Gold-Silver Technical Indicator

The lead subject of the next Silver Analyst issue again visits the leverage that silver offers over gold. However, unlike issue one which looked at the current numbers, we look at how silver leveraged gold right through the metals bull market of the 1970s and beyond. How much did silver leverage gold back then?

The answer surprised me and is an important result as far as I am concerned! In fact, the result was important enough for me to invent a new price indicator for when major moves in gold and silver may be topping out. The indicator I have in mind has only occured 4 times in the last 32 years of the silver and gold markets. Indeed, the most recent one was a matter of weeks ago.

I call it the Silver Elasticity Indicator or SEI and we'll talk about it in issue 2 of The Silver Analyst.

Remember that the first issue of The Silver Analyst is free and can be still obtained by sending an email to with "FREE" in the subject line.

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