Is it Spring for Silver?

Written by Stephen Outram Wednesday, 30 November 2011 11:21

The price of silver has been consolidating for the last 3 months; is now the time to buy?

This is the chart for silver over the last 3 months. It's trading in a range $US 30-35. Technical people call this 'consolidating' or building a base; a base from which to spring to new heights. The longer silver consolidates, the less risk there is that its price will fall below the base.

You can see on the chart, in September, where the price was smashed-down due to changes in margin lending rates (this also happened in May 2011 and silver rose from $34 to $43, a few months later) and the 3 months of consolidation to December.

My question for you, is, "Is now a good time to buy silver and then hold; and can you be making money with that?"