On Thursday, September 15, I spoke with EWI's Metals Specialty Service editor Mike Drakulich to discuss which market presents the most compelling opportunity right now. And, of the three major metals he tracks -- gold, silver, and copper -- Mike reveals that the color "white" is shining brighter than the rest.
Hands down, silver is one of the most problematic markets to track using "fundamental" analysis of financial markets. The reason being, silver has equal demand as a "precious" and "industrial" metal. And, in the eyes of the mainstream, these dueling identities are in direct conflict.
Case in point: If silver is a precious metal -- and therefore a "safe-haven" store -- it will rise in value as economic growth declines. However, if silver is also an "industrial" metal, a waning economy reduces the physical demand for electronics, film, jewelry, dental work, and every other source of silver. It's a dead end.
Elliott wave analysis avoids these mainstream pitfalls by focusing on the internal measures unfolding in silver. It's not about external news events, but rather, the intrinsic Elliott wave patterns emerging on a market's price chart, alongside a time-honored arsenal of technical measures of momentum, breadth, and sentiment.
That brings us back to EWI's Metals Specialty Service and editor Mike Drakulich's recent analysis of silver. In his latest intraday update, Mike reveals that key action has just taken place in the white metal and writes:
"...odds are increasing [for one kind of move] with the [recent move into a key price area]. I favor a large third wave is unfolding. Bottom line is that with [this major price level] broken, prices should keep moving in one direction sharply."
For newbies, "third waves" are the crown jewel of Elliott wave impulse patterns. They are strong and broad and often generate the greatest volume and price movement. Even Ralph Nelson Elliott himself described them as "wonders to behold."
This is a pivotal time for silver. Metals Specialty Service editor Mike Drakulich will be there to alert you to the surefire signs that silver prices have indeed confirmed his near-term wave count.