Resistance is futile

Hi everyone, Dean Workman here, thanks for joining me again.

With all the turmoil in the global financial markets, it seems that the resistance levels in both Gold and Silver are falling by the wayside. The price suppressors of Silver have tried long and hard to hold Silver below the $50 USD price point, and the big question is this.... "will we see Silver break free to new all time highs?"

If you have been studying the financial markets for even a short time you will know that it is not a matter of "will" but "when will" this resistance point of $50 USD be broken. The next obvious question is where will silver go to in price once this psychological barrier is broken and where will the next "resistance" level be? $60? $80? $100?

Gold continues to smash through all previous resistance. Who would have thought that Jim Sinclair's $1764 price projection would have been achieved in the summer trading months of 2011. Gold sailed passed this magic number and really hasn't looked back. Will there be a consolidation in the gold price soon? I ask that question because usually after such a massive move like we experienced this week (gold gaining over $100 in just one week) there is usually profit taking and a sell off down to previous support. This time though, I just don't know if it will happen. Time will tell as it always does, however, those who were waiting for gold to go back to the $1540's support may as well get over it and reset their projections.

So, back to silver... where to from here?

Looking at the historical link in the price of Silver and Gold, some suggest that the Silver to Gold ratio will soon return to 16:1 (sixteen ounces of silver to equal one ounce of gold). If this is true and the ratio does start to move back from it's present ratio of about 43:1, with gold at about $1840 this would mean that Silver has a true value of $115. Even if the ratio returns to the 33:1 it hit a few months ago, the case for at least $55 silver is not only valid but almost a given.

At the end of the day we all make our own decisions and need to be mature enough to accept responsibility for our own actions and decisions. With that said, the greatest wealth transfer in history is clearly under way, I know where I'm investing. How about you?

enjoy your day

Dean

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