Thursday, January 7, 2010

Silver


Date when silver was first traded as a commodity on the National Metals Exchange.

Why Silver?
Did you ever take a teaspoon out of your Sterling Silver box and weigh it on you kitchen scales? It's a little over an ounce, right?  Silver sells for about $18.50 per troy ounce on the Comex. Let's see that is 8 place settings x4 utensils x $18.50.  And you thought it was an ugly pattern. Actually many of the pieces weigh more than an ounce, but in the words of your grandmother it was useful and an investment.

You can find silver all over your house and even in your car.  Right this minute you will find silver under the keys of your computer keyboard.  Silver is a dependable safety switch for all things electric including your light switches, and your circuit breakers.  Think of all the household electrical products manufactured in China. Does that explain their demand? 

In addition to silverware and jewelry, silver has a wide range of uses. Silver nitrate is used for photographic film and as a natural antibiotic in medicine.  Although photography and medicine no longer demand huge supplies of silver, electrical devises have increased the demand four fold. Silver mining companies are often six months behind filling their contracts. 

The Moon rules Silver
The light of the silvery Moon is always changing and therefore the price of silver is constantly changing. It is a moody metal, unpredictable and its valuations are capricious.  However if you follow the price of silver over the past 70+ years you will note that it trends higher until the Sun is in Cancer and trends lower until the Sun is in Capricorn.  

The chart above is useful as an early warning to predict the rise and fall of the price for silver. Transiting Pluto will trine its Mars Neptune conjunction and transiting Saturn will trine its Venus.  It looks like a good play long, but silver is capricious and stops are essential. Note these aspects have been in play since 2008.

I tested this chart for silver with past highs and lows. The best story happened in 1980. I chose the event when the Hunt Brothers attempted to corner the silver market.  March 1980 silver sold for almost $50 per troy ounce.  However March 24, 1980 there was a rules change concerning margin requirements for commodities traders.  The chart for Silver indicates the the rules change with Pluto squared by transiting Pluto. The Hunt brothers had cornered one third of the silver market, but the change in margin rules would bankrupt them.  It's a good story.

In financial astrology it is a good idea not to mess with Pluto.  Transiting Pluto loves to destroy wealth and will chose a conjunction, square,  or an opposition to accomplish the task.  At the moment Pluto is making a square to Saturn and looking for targets.  Double check the astrological charts for the stocks and commodities in your portfolio.

Charts for stocks and commodities may be found in the Textbooks for Financial Astrology. Book 4 contains a number of commodities charts including this one.

  




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