Im into silver - today at 9.65 and a month ago at 12.76 (sheeet!) - its all about fundamentals and of course Teds articles (thanks Sabre and others) and I understand that gold and silver are primarily correlated to oil. However, I am someone still learning the ropes about these commodities and for which intrinsic value can never be zero, (like that alot right now!!! lol) why is it moving is step with the markets, for which it is traditionally thought of, and used as a hedging instrument for volatility in stock markets. It seems it is not commonplace for the returns of theses metals to mimic that of major indicies, so I guess the real question is why is oil moving in sync with these major indicies? In saying all this I have never felt more comfortable about the fundementals of an investment as I do about silver. Not enough cash to play gold (trans costs to high) but correlation alone satisfies risk vs return ratio.
Hope a good discussion starts around this area because I think alot of people are thinking of this burning question also, but not game enough to ask outright. Many of you may think that if I do not understand then I should be out of the game outright right??, but I am 28 and feel like I have started to learn and will continue to learn deep into my pre-retirement years. I know this is the only real path to financial freedom so Im going balls out to learn. Many good posters and at the moment are far outweighed by the 'not-so-good' posters giving their (once bullish) veiws on the current market sentiment and the main thing is they are making me think alot harder about any investments. Also I have noticed silver down from $15 to $10 = 33% retrace (fib 32.8), so I really like the long term outlook, especially after today. Elliuot says this is the first major leg up, recently followed by the 33% odd retrace - I think there is solid grounds for further gains on the back of this info, but like I said, feel free to shed some light some of you old timers!!!! lol :) (This doesnt necessarily mean that thos who post are wise....or old ;).
ALL thoughts welcomed. Small sentences please!!! ;)
