Tuesday, February 15, 2011

Silver Is Approaching Stage Two of Its Bull Market

As silver continues to move higher, it's getting closer to stage two, according to James Turk.  The precious metal bull market can be broken down into three stages.  Turk believes silver is still in stage one and will not enter stage two until $50.  Here is the breakdown on stage one, two and three.

Stage one
  1. Denial Phase
  2. Only smart money is in the game
  3. The bull market is under the radar.  You will see very little if any media attention
Stage two
  1. Continues to climb a wall of worry. 
  2. The public finally becomes aware of the bull market
  3. Mutual funds are created to invest into the sector
  4. Professionals invest money in the sector, accelerating the bull market
Stage three
  1. Public finally invest in the bull market.  "Dumb money" moves into the sector
  2. Smart money exits
  3. There is a Euphoria phase where everyone feels the sector will go up forever.  Think of the recent real estate bubble.
Moving forward when you think of silver remember these three stages.  If you are paying attention, you will see when we enter stage two and eventually stage three.

Full Turk Article Here

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