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May 2011 : Silver Rally On The Cards?

Well Folks,

I hope you've been laying low...waiting for the next good entry into bullion.

Looks like the adage 'Sell in May and go away' rang true. Both gold and silver put in their tops at the beginning of the month before descending rapidly. This is all healthy for the markets. It does not signal the end of the bull run.

Traditionally, summer months are slow and gold starts to rally again in the Fall. Wanted to share with you a graph courtesy of Clive Maund a commentator on Kitco.com

Note, even though a rally may be imminent, an ultimate test of the 200 day Moving Average may still be on the cards before we see Silver leave these prices behind forever.

Silver Rally 2011 - Classic Candlestick Action Indicating Reversal Points