Silver Prices at 200 Week Moving Average – April 2nd, 2013 – Chart – $SLV $GLD

Silver prices have continued lower today. The price is at an extreme and a critical junction. Below is a weekly chart that has equidistant levels overlaid on it.

xslv silver weekly chart April 2013

 

The main point of this chart is to demonstrate that a 200 week moving average isn’t something that has been touched since mid-2009.  Silver clearly went parabolic in 2010-2011, but currently this metal has retraced enough of this move over price and time that prices can no long be considered overvalued.  If someone that has been thinking about picking up silver but hasn’t, it is time to at least pick up some ounces.

With physical demand starting off the year very strong with the US mint having to suspend sales to catch up with demand.

February & March physical demand again has been very strong.  Below is the March figures for Silver Eagle coin demand:

The first thing that stands out about the numbers is that silver eagle sales continue to be very strong with 3,356,500 ounces sold in March. This was the second largest amount ever sold in March, and the only March that surpassed this number was in 2010 – when silver prices were 40% lower.

U.S. Mint Sales For March: U.S. On Pace To Use All Domestic Mine Production For Silver Eagles

 

Bottom Line – Take a position if you are considering accumulating physical assets