13 Incredible Gold & Silver Charts

From the recent Golden Cross in gold and silver to Chinese silver sales, the true money supply, historical spot charts, to investment demand, presenting 13 incredible MUST SEE gold and silver charts! Submitted by Peter Degraaf

 

Some Incredible Gold Charts.

Technical analysis is a great tool for analyzing where the market has been.  Since human beings almost always behave in cyclical fashion, we can observe patterns in market action that tend to repeat.  Combined with fundamental studies, TA is applied to the markets by virtually all of the successful traders.

Some patterns occur so often that names have been assigned to these patterns such as:  ‘Head and Shoulders’, ‘Cup with Handle’ and ‘A.R.A.T.’

In this essay we draw your attention to another pattern that recently occurred on the gold charts, for only the fourth time in the past seven years.  Each time it appeared during the past seven years, it precluded a strong advance.

The pattern is called:  ‘Golden Cross’, or ‘Bull Cross’.  Here is a chart (all charts courtesy Stockcharts.com unless specified), that has a blue arrow pointing to the pattern we are referring to.

During August of 2005 the 50DMA crossed over the 200DMA for a ‘Bull Cross’.  Gold was trading at $435.  Nine months later gold reached $725.

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During December 2006, gold once again produced a ‘Bull Cross’.   Gold was trading at $625.  Eleven months later gold reached $850.

 

 

During March 2009, gold again carved out a ‘Bull Cross’.  Gold was trading at $900.  Thirty months later gold topped out at $1920.

 

 

Featured is the daily gold chart.  A few weeks ago the 50DMA once again moved into positive alignment with the 200DMA (blue arrow).  For confirmation we wait till both moving averages are rising (as now).  When price closes above the green arrow we will make the assumption that the pullback that began in early October has run its course.  The RSI at the top of the chart has changed from overbought to oversold.  The MACD at the bottom of the chart is back at a year-old support line.  The CCI just below the chart is making its customary bottoming confirmation pattern (green boxes).   How high will the gold price go this time?  In order to match the 2006 advance, price could reach $2740; to match the 2007 performance gold would top out at $2640, but in the event that gold matches the performance of 2011 we could see gold trading at $3,330.  According to Mark Twain ‘history does not always repeat, but it often rhymes.’

But what about the fundamentals?  After all we need two wheels on the cart for balance.  The energy for the current bull market in gold comes from several sources:

#1:   Budget deficits.

#2:   Negative interest rates (CPI higher than short-term interest rates).

#3    Increasing money supply, (more dollars and Euros chasing a limited amount of gold ounces.

The next chart is a good example of item #3.

 
This chart courtesy Mises.org shows the U.S. money supply is rising exponentially.  The grey bars indicate a recession is underway.  The Obama recession is now the longest recession since the Great Depression.  As long as the recession continues, the money supply can be expected to rise since politicians cannot seem to stop spending.Well, and what about silver?  Surely when gold rises, we can expect silver to advance as well?

Featured is the daily silver chart from 2005 – 2006.  Notice how the 50DMA rose above the 200DMA as it produced a ‘Bull Cross’.  The rally that followed moved silver from 7.50 to 15.25, for a 100% increase.
This silver chart highlights the next time this pattern presented itself.  It was November 2007.  Silver was trading at 14.50 and the subsequent rally took price to 21.00, for an increase of 45%.
This silver bar chart shows the next time price produced a ‘Bull Cross’ (in April of 2009).  Price rose during the subsequent rally from 14.00 to 49.50, for an increase of 250%.  At the right of the chart you can see where price is just now completing its latest ‘Bull Cross’.   For a close up look we present the next chart.

Here is a close-up look at silver’s latest ‘Bull Cross’.  Will we see a 100% increase like we did in 2005?  Or a 45% price rise like 2007?  Or how about an increase of 250% just as in 2011?  Time will tell.  (In the event that silver matches the 2011 performance, price would top out at $130.) In the meantime the silver bulls can take comfort from the fact that the RSI (at the top of the chart) is at previous support levels, while the CCI (at bottom of chart) is repeating a bottoming pattern (see blue boxes).

 

At the same time SIL, the silver producers ETF is carving out a bullish ‘cup with handle’ formation.  A breakout at the blue arrow will be the trigger for the next rally.  The green arrow points to the by now familiar ‘Bull Cross’.

 

This chart courtesy SRSrocco and Silverdoctors.com shows a dramatic increase in the number of Chinese 1 ounce silver Panda coins.  Every Panda removes an ounce of silver from the market.

This chart courtesy Casey Research, (based on information from the CPM Yearbook), shows silver investors moving out of ‘paper silver’ and ‘digital silver’ (black bars), into physical silver (orange bars).   As more and more investors opt for physical silver, this trend will make it increasingly difficult for traders in ‘digital silver’ to dictate the price at which physical silver is bought and sold.

 

This chart courtesy Seasonalcharts.com shows the seasonal tendency for gold to produce a rally after the October lows.

 

DISCLAIMER:  Please do your own due diligence.  Peter Degraaf is not responsible for your trading decisions.  Peter Degraaf is an online stocks and bullion investor with over 50 years of investing experience.  He produces a daily market letter for his many subscribers.  For a sample copy send him an E-mail at itiswell@cogeco.net or visit his website www.pdegraaf.com

 

Comments

  1. Anyone else notice silver’s gap-up in the price charts this morning, with prices reaching nearly $32.70 in a very short span of time?  Same thing happened to gold.  It’s not very often that silver and gold prices gap up on these 24-hr charts, so it’s an unusual event.  Of course, they were immediately pushed back down as part of ‘price control’.

    Silver and gold prices often gap down from the huge price suppression sell-offs by the cartel, but it is extremely seldom to see them gap up.  This is showing a change in tides.

    Also, there is absolutely no doubt in the world that physical investment demand for pure silver is sky-rocketing all throughout the world.  And it is not because of a few big billionaire investors, but because of individual people from all walks of life who are finally waking up to the fact that the only intent of the powers that be, going forward, is to debase and devalue the national fiat paper currencies.  In the end, the only remaining hard currencies (real money) with no national boundaries will be the same hard currencies that have well-served the world for thousands of years before–physical Silver and Gold.

    • Hey Pleb,

      Charts don’t mean a dang thing anymore, especially since my wife’s nail salons cousin’s
      yardman died. He kept up with all that stuff. Regardless with all the world’s central banks
      buying Gold hand over fist, Gold should be skyrocketing, the bastard cartel cannot possibly
      have that many short positions? They say that Gold will skyrocket if Oreo Obama is re-elected?
      Gotta be kidding! Does he have a Gold Rush “”ON” button? Naah. The World Gold Council in
      the future will put a control price on Gold in the ”Free Market”, which is continuing no longer
      to be free whatsoever. That’s my opinion! They will govern the price against Gold assets of
      all countries so that their currencies will be solvent backed by Gold. In other words no countries
      currency will have an advantage over another unless they have more Gold. Whatever country
      has the most Gold will have the advantage of the cost of goods and services lower possibly
      than another. Like the ole boy said, “Stock up on Beans, Bullets and Band-Aids”, there’s a
      Civil War coming down the pike!

      Don’t ever underestimate the Central Bankers of the world!

      Google “History of the Money Changers”, all the answers are there.

      Ranger from Texas

  2. The chart showing the recent trend of abandoning the ETFs in favor of physical silver got my attention.  SLV has been a bulwark in the control of silver prices.  It is a diversion of resources from real silver to the paper silver ponzi scheme.  Just one of many tables in the fed’s big casino.  People are getting wise to the game.
    Buy silver and stash it yourself.  We’re almost there.

  3. Graphs, Data, Statistics can be read by someone who studied this stuff.  What has shown me is a great deal of disparity of REAL ASSETS, or Honest Money. The game is in Half Time, Folks. The introduction of the internet, the advancement of Human Kind, within the last 5 thousand years states I am not getting out of this alive. Here is my chance to make this a better way, or a worse way to finally die with the bankers foot stepping on my throat in resisting the STATus QuO. So, does anyone know how to study Data free of charge?

  4. A beautiful sight. :-)

  5. Has anyone ever thought of Stacking while you have a chance instead of analyzing the charts and watching the spot price? It drives me nuts don’t know about you. LMAO
    An old friend always say’s, “Now Is The Time To Go and Visit Your Local Coin Dealer”.

    • I actually do both. I buy silver whenever I receive some cash and I look at the chart to see if it is worth buying it right now or I should wait a few more days.

  6. Until the cartel is smashed and out of business charts mean zip.

  7. Those are also 13 good reasons why you should buy physical gold and silver. I think silver is better than gold as an investment because today, silver is way undervalued compare to its historical price and it is in short supply in bullion form so you will gain more purchasing power with silver.

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