Wednesday, June 9, 2010

Silver as a Commodity



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 Virgo. Eclipses of the Sun or Moon do not have a dramatic effect on the price of silver. If silver has a big price swing you must check transiting Pluto because someone is trying to manipulate the market.

I thought I would give you all a short lesson in how an astrologer looks at a chart for a commodity. First you check for the question is it a seasonal commodity. Price history is very important, but the web sites use the business calendar. You have to adjust your eyes and make use of the Astrological calendar. The Sun changes its astrological sign about 10 days before the end of each month. Therefore you look at the price about a week before the calendar month ends.

The Sun will move into Cancer on June 20th, the Summer Solstice. Therefore we might expect that the trend for Silver will be down during the next few months. OK then how about Pluto? Pluto September 2010 station at 2 degrees Capricorn is trine the Mars/Neptune in Virgo. It seems unlikely the price will be manipulated.

Transiting Mars is past the Virgo planets so the little boost of energy he gave to price is over. The chart seems to say Silver is a possible choice for investments, but suggest you save your cash for a month or two until it finds its lowest price. Of course if you have an investment in Silver you might take some profits and then add to your holdings later.

The chart above is useful as an early warning to predict the rise and fall of the price for silver. 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 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. Summer 2010 Pluto and Saturn are square. A square to Saturn and Pluto is always looking for targets, but it appears it might forget silver. Pluto seems to be out of the picture in the chart for silver.

Silver and Platinum are usually found in the same place as Gold. Miners prefer the profit margin in gold and hedge their expenses with silver as it is in greater supply. The electronics industry fills most of the demand and usually the gold miners can keep them well supplied.

Why I'm wrote this blog
During the past week every single E newsletter is recommending Silver and Gold. Probably every cab driver in New York is recommending both. So many suggestions would tell me its time to sell and buy vacant land, and dividend paying stocks, or better yet investing in yourself. It is always a good idea to have about 10% of your portfolio in commodities. Silver is a useful metal and worthy of inclusion. If you are patient you could find a bargain in Silver.
There are a lot of phony numbers out there.

Coming soon to a sky near you, The Lunar Eclipse which should be give you a bit of optimism.

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2 comments:

  1. Hello,

    I have been following silver for a year noting that on the new moon aspect of each month and the few days following Silver prices make a sizeable move.Can you please tell me what may ionfluence the direction?
    Thank you
    Joseph Amaya

    ReplyDelete
  2. (Please note:The above blog was written by Kaye Shinker who passed away last November.)

    Hi Joseph, In Randall Ashbourne's article "The Moods of the Moon - Trading the Mood Swings of a Lunar Cycle" on our web site at:
    www.astrologicalinvesting.com/html/articles_pages/articles-ra_Moon-Trading_lunar_Cycles.html
    Mr Ashbourne discusses how statistically the New Moon and a few days following tend to be positive in terms of temporary highs in the market.

    I have not done research on whether this has been true for silver. It was my late partner Kaye Shinker who had done the research for the blog you commented on.

    However, there is definite correlations between the Sun and Moon signs of isolated highs and lows in COMEX Silver. Recommended reading is Ray Merriman's "The Sun, the Moon, and the Silver Market - Secrets of a Silver Trader" which can be purchased at: www.astrologicalinvesting.com/html/shop.html

    You may be interested in reading Randall's article and many of the other articles on his web site at www.theidiotandthemoon.com The information on his web site is free. Randall's "idiot" method using the cycles of the Moon along with his simple "idiot" technical tools is an excellent system that will increase your profitability and reduce trading losses.

    Hope this helps! Marley

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