Sunday 5 June 2011

My View - Silver, Gold and Oil

SS says
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In my view , the hype around Silver is over.
When it went parabolic from 22 to 49 - every other guy was advising to buy Silver - making projections for it to touch 100 , 150 and 200.
Silver is done.
The simple double top at 49 says it all.

Silver will move down in waves.
It should end up in single digits - in my view before 2015/16.
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Gold
Gold also feels like a bubble now.
It may go higher in the future but in the coming deflatin - it should also sell off.
Central banks are buying Gold like there is no tomorrow.
This is a bearish signal for Gold as of now.

I hope you remember when UK and many other EU countries sold Gold near its low a decade ago - Gold was around 250.
They say 20 years of falling prices from 850 to 250 and near the end of the down move sold Gold.

Now after looking at 10 years of rising Gold prices - they are all buying in.
I expect Gold to be in the range 500 - 750 before 2015/16.
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Oil
I think Oil should peak near 120.
It may also do a double top like Silver did near 147.
That may really stretch it - but I dont see Oil at 200 or 300.
Many people are projecting Oil to head to 200 plus.

I think Oil should bottom in the range 10 - 33 before 2015/16.
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