Another Silver Buy Signal
July 3, 2013
For the umpteenth time (actually the 3rd since June 2012) silver has given a buy signal according to my reading of the technical indicators.
Problem: How valuable is technical analysis (moving averages, oscillators, over-sold conditions etc.) when the silver and gold markets are dominated by computers (High Frequency Trading – HFT) and not human beings?
GATA (link) had this to say:
“Technical analysis of a manipulated market like gold has been tedious nonsense for years, but these days, with virtually infinite paper dropped on the gold futures market at illiquid times to drive the price down even as the physical market remains strong, technical analysis has become insulting.
The only analysis worth anything anymore is the identification of the source of all the paper.
The suspects are obvious — Western central banks.”
Gold and silver bottomed in June of 2012, dollar printing moved into high-gear, and the metals “should” have rallied from there. Instead they did a brief rally and fell to extraordinary lows in April of 2013, and even lower lows in June of 2013.