Going back to when Silver made it`s huge run, one thing that stands out is the RSI ( Relative Strength Index ) ! Whenever the movement went past 70 to the downside the price corrected down. Most times the RSI dropped to around 30 or under. I do see once when the momentum was really strong the RSI stopped at 60 and resumed to the upside crossing over the 70 level breifly then down to near 30. During that time there was a consiberable rise and worthwhile to be well invested. Once it came down to near 30 a buy certainly was a smart move for those who missed the boat to that point. When the long term decline began, the spikes declined in percentage gains so the approach had more risk. At this point it is a good idea to watch currency prices. Recently the dollar has gained in value thus the silver decline and in general precious metals.
Debt level is still a major issue so untill that debt shows a decline precious metals prices could seperate themselves from the price of the dollar. Oil prices could affect that also. No matter what we see short term physical holdings I believe is a must.
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