Monday, May 19, 2008

Silver purchased

After exiting my position in silver several weeks ago, I have watched as the price of silver (and other precious metals) has consolidated. This morning I purchased a new position at HK$133.8 per ounce (US$17.15) including spread.

From a charting perspective we are now seeing signs that the precious metals have completed a consolidation phase and may be resuming their long term up trend. From a fundamental perspective, equity markets have rallied strongly over the last few weeks while precious metals (possibly excepting platinum which has lead the other precious metals) have lagged the equity markets. At the same time, concerns over inflationary expectations have received increased attention. The latter is generally considered to be bullish for precious metals.

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