Interesting chart from King World News on how badly oversold silver metal is.

For a long time now, my target price for silver, after it finishes bottoming this time, is $75.  In this post by King World News  (don't bother clicking on it, I always give attribution even if the article is "thin") I found this chart, which I think it worth thinking about.  What's interesting about it is the collapse in the MACD, which is a cyclic oscillator that, in short, measures momentum.  Momentum is a very close cousin to "trader sentiment".  Although silver is now seemingly finding support at its 2008 peak, the MACD is literally through the floor.  Since silver will never go BK, this is the kind of buying signal that smart traders look for.  One more thing: look at that last wave down in the MACD: 3 waves and with C a good deal stronger than A.  Call me crazy but I really think we are close to a bottom in the metals and miners here.  It is CERTAINLY a good time to make another dollar cost averaged purchase of the physical.

Keep in mind that these things are cyclical.  When governments around the world begin to lose control (as is happening in many parts right now), the confidence is lost in their worthless paper based money supply.  Mark my words: silver will be at least $50 by 2017, perhaps much higher.  That MACD is like a coiled spring.  When the buying comes it will come fast and hard.