Well hello Silver. In a series of moves that seems to be tracking positive signs in the price of gold, silver made some bold moves last week, driving $2 northwards and crossing over the $30 mark. Coming on the tail of several listless months bobbing up and down on the calm oceans of the Precious Metal Summer Doldrums, once again the bulls are out and the bears are skulking back in their caves. Two weeks ago we wrote about how the price of silver had crossed over its 50 Day Moving Average line and held it in a move that had not been seen for several months and portended a possible August silver rally. Well now that move has been solidified as Silver not only held it but fired upwards in the days following right up to its 50 Day Moving Average trendline on the weekly scale. And just like gold, a MACD crossover has occurred which on the weekly chart bodes well for the future.

August 2012 Silver Rally

Hubert Moolman is bullish in his latest ‘Silver Update’ in which he writes “The silver chart has formed a big pennant like that of the gold chart. What this indicates is that the silver price will likely make a massive move soon…

The technical and fundamental evidence that I have collected, and look at, tells me that the price is likely to go upward out of this pennant formation. There is a big threat of deflation, but, in my opinion, it is this very deflation (brought about by the collapse of the debt bubble) that could be driving silver prices higher.”