Sunday, April 1, 2012
SLV Trading Volume
Click to enlarge.
I've once again zoomed in to show the detail in the 100 day moving average and how it relates to the exponential trend.
Like gold, I'm not willing to suggest that this is an exponential trend failure yet. The data is noisy. We're still pretty close to the red trend line. It is entirely possible that the data comes back up to meet the former trend.
That said, the chart does have a certain blow off top look about it. Silver investors who backed up the truck roughly one year ago can't be all that happy. Perhaps they will be ultimately redeemed. Perhaps not. Stay tuned.
For what it is worth, I do think both gold and silver are overpriced relative to toilet paper. I felt that was true when gold crossed $1,000 though, so take my opinion with a grain of salt.
I did own gold and silver from 2004 to 2006. They treated me well. As I've often joked here, I was once a believer and now I am a heretic. I just don't think any asset is good at any price. Eventually it all comes down to relative value.
Speaking of relative value, candy bar investors did extremely well over the past year.
That's an instant 10% return on investment for those who love candy. It won't make you wealthier though. Sorry.
Here's the good news. You won't pay tax on the capital gains. You can simply eat your inflationary profits.
I must admit that my girlfriend and I ate all of the inflationary profits. It's not that we love chocolate. We just didn't want the chocolate to go bad. Yeah, that's it. We were just being practical. :)
GLD Trading Volume
Yahoo: SLV Historical Prices
Kitco: Historical Silver Prices