from Silver Doctors:

SD Friday Wrap: A subtle uptrend no more. Silver finishes the week strong and looking pretty fine right about now. Here’s a recap…

On Monday I was looking for higher prices in gold & silver to end the week.

Silver ended the week with a nice move, but gold has lagged and failed to regain the “psychologically important” level of $1200.

So here’s what the “experts” are going to say about this (this is the general line of thinking) –

“The move in silver is not confirmed by a move in gold so the move in silver is not valid and we’ll be at a 13-handle very soon.”

I’m not so sure, however.

I think the more likely scenario, assuming gold stays above the mid-August spike low of $1167, is that this is more likely the start of the move higher in the metals than it is just another break-out fake-out in silver.

Gold is higher than where it was in mid-August, so gold has “led the way” as the experts say needs to happen, which is exactly what has happened, and silver, being gold on steroids, catches up to gold and outperforms gold, so this is what we could be seeing right now.

I think that is exactly what is going on.

Why do I think that?

Crude oil.

It really is that simple. I think that crude oil is acting as a floor for the price of silver. So let me go ahead and throw-up the crude oil chart first:

We’re above $73 bucks, and that strength is with dollar strength over the last two days. Crude oil is a major cost in the production of gold & silver because it take a lot of machines to move a lot of earth back and forth to convert metal inside of rock into fine gold or fine silver. And we’re sitting above $73. Now, if crude oil falls down into the $50s, then think that sure, we could see a 13-handle again in silver, but I really do think the support at $14 is solid, and combined with the move today, we can surely move that support line up a notch for the white metal.

We’ll see.

That said, today is the end of the week, and for all intents and purposes, the end of September and the end of the Quarter.

So let’s look at the weekly’s and monthly’s as well.

First, however, let’s zoom-in:

I wanted to show silver’s out-performance to gold as the week went on. We can see that gold is down on the week, and it never really was able to recover from yesterday’s smack-down. Silver, on the other hand, had a very nice pop today, and those shorts must be getting nervous right about now. I mean, if you were able to buy silver’s dip near the $14 mark, well, we’ve already moved some 5% off of the lows.

I’ll take that, especially since we now have Peak Fed to deal with in addition to Peak Trump.

So on the daily for silver we see a nice big, fat, beautiful candle:

I have been writing about how silver is in a subtle uptrend, and just today, it seems that silver has decided to come out of the closet. While the moving averages aren’t on these charts, silver came up and nearly tagged its 50-day moving average today. If silver can test and then break-out of the moving average next week, well, we could very well see the start of all those spec shorts beginning to cover, and remember, the commercials don’t necessarily have to feed naked shorts into the specs as they stand to make bank on their long positions.

We’re also seeing premium creep, but I’m still not quite sure how to write about it and include it in my analysis because I don’t want to seem biased. For now, I’ll talk in generalities I would ask everyone to look on various bullion dealer’s websites and simply look at “generic silver rounds” as a product. I was making the rounds, pun intended, across the various bullion dealer’s websites last night, and what I noticed was that unless you’re buying 500+ coins, even generic rounds are going up in premium. I mean, spot price was in the $14.30s last evening, and I was seeing prices for 1-100 generic silver rounds over $16 for most varieties (implying a $1.50+ premium, for generic) . It seems most websites had some deal, but the deal was for bulk. The point is, and I’ve said this before – we are at the sweet spot right now as far as price plus premium goes.

We can see silver is now up for the second week in a row:

Looks like were about to have a bullish trend in the technicals as well. All in all, it is not looking terrible for silver right now.

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