Recent commentaries

In the last several days I received many letters, in which Readers commented on my analysis of the seasonality on the silver market (thank you), so I decided to provide you with more detailed analysis of silver in the following essay.

This week's free essay is dedicated to precious metals stocks - I analyze this important sector not only by applying technical analysis to its short-term chart, but also the Gold Bullish Percent Miners Index, relative performance of PM stocks to other equities, and our own unique indicator from the Premium Charts section. Additionally, I’ve been recently asked about the correlation between the general stock market and PM stocks - can it ever be broken and what may cause this to take place - this week's essay includes my view also on this topic.

Gold is moving higher and new highs are being achieved on a daily basis. Yet, silver it not above its previous highs, so what does this divergence mean to precious metals investors? As you probably know, in my previous essays I have emphasized that silver is likely to outperform gold in the future. In this essay I comment on what may cause silver's rally or plunge and how likely either of them is in my view.

The seasonality on the precious metals market is much more than just the summer doldrums phenomenon, corresponds to consolidation in PMs during summer months. The seasonal tendencies are present in many markets, and they often helpful in timing the key turning points. That was the case recently in case of silver, USD Index, and precious metals stocks. This essay features the situation in the last two markets with the emphasis on the likelihood of the plunge in PM stocks because of the emerging head-and-shoulders pattern.

The U.S. Dollar, the currency in precious metals are priced in, is standing at a crossroad today. The possibility of breakout to the upside has grown in the past week, but the trend still remains down. So, what are the implications for the precious metals? Apart from the analysis of USD and gold charts, this essay includes our comments on the situation in the Commitment of Traders report for the U.S. Dollar.