Thursday, September 4, 2014
If you don't already own silver, now is the time to buy.
Last month, I told you I liked the idea of buying the metal.
The price of silver had pulled back. And silver's 14-day relative strength index (RSI) and full stochastics – two measures of overbought and oversold conditions – were both at oversold levels that typically precede rallies in the price of silver.
Today, there's another reason to buy the metal. My favorite silver timing indicator just flashed a rare long-term "buy" signal. And the market is giving us a great opportunity to get in...
Take a look at this long-term monthly chart of silver with its Moving Average Convergence Divergence (MACD) momentum indicator...
The MACD indicator is often used for determining overbought and oversold conditions. But it can be used as a long-term timing indicator, too.
Without getting too complicated, when the black MACD line crosses above the red MACD line, we have a "buy" signal. When the black line crosses below the red line, we have a "sell" signal.
The blue circles on the chart show the "buy" signals over the past 10 years, while the red circles show the "sell" signals. The corresponding blue and red arrows show you how previous signals have worked out.
As you can see, prior to last Friday, there were only three long-term "buy" signals and three long-term "sell" signals on the chart. And every trade using these signals – only buying silver on the "buy" signals and selling on the "sell" signals – over the past 10 years has been profitable. That's an amazing track record.
On Friday, we got a brand-new "buy" signal. This is the first long-term signal since the indicator flashed "sell" back in September 2011. And it's the first "buy" signal since mid-2009. Investors who followed this indicator to buy in mid-2009 and sell in September 2011 could have made triple-digit profits.
So investors should be buying silver today. And the market is giving us a great opportunity right now.
On Tuesday, silver fell by 1.7%. The metal is now trading close to its low for the year. And based on the MACD indicator, there's a tremendous amount of upside potential for silver from here. So right now is a terrific time to buy.
Best regards and good trading,
If you're thinking of adding silver to your portfolio, find out what you need to know about the metal in this must-read interview. You'll learn three factors behind a bullish case for silver… just how high it could go… and how to buy and hold it.
"One of the world's top resource investors is betting on higher platinum prices," Brian Weepie writes. "And his reasons why could make precious-metals investors a lot of money over the next few years." Find out why you should invest in platinum – and the best "one click" way to buy it – right here.
Video-game makers are having a strong year... Activision Blizzard and Electronic Arts rise 45%-plus over the past 10 months.
It's a bull market in steel... Steel Dynamics and U.S. Steel jump to new 52-week highs.
Shipping companies are stuck in a downtrend... Frontline and Eagle Bulk fall 55%-plus over the past six months.
Medical distributors McKesson and Cardinal Health soar to new 52-week highs.