Advanced technology is both a blessing and a curse. Where mouse-clicks and emotions are simultaneous.

Those of us braced for the storm ahead will likely find the upcoming volatility (in all financial markets) to be like nothing we could ever imagine.

Many expect silver prices to fluctuate wildly. Both to the upside and down.

Even the “sideways” trade may unnerve the best of us. Uncertainty leading to despair will arise as fundamentals slowly break out from dormancy. – no matter how committed we are to the long-term, insurance character of silver.

Physical silver investors are tethered to the primary trend. Possession of the actual metal requires an entirely new layer of appreciation – and there is little glamor or excitement about it.

Yet we all crave a little excitement.  Or the occasional signal or impetus to buy? And why not understand the nuance of the trade? Learn all you can about this scarce resource – that primal money you hold in your hand?

Is there a way to balance observing the short-term, while remaining committed to the long-haul?

And read commentary about what it all means for yesterday and tomorrow, regardless of the direction of the primary trend? Yet, from source that “gets” it…

That every fiat currency ever created has had the same fate. That markets today are managed by rogue investors enabled by sovereigns to take down sovereigns in a great new battle in the shadows.

Fundamentals have been ignored for so long here, and in other markets, that the professional trade can essentially the influence.

Let me introduce you to Bill Downey’s GoldTrends.net.

Mr. Downey has a simple to follow, clear, technical analysis website for gold and silver.

While the content serves the advanced-technical mind, it is presented with a nod to the fundamentals and an accessible presentation.

Not much hype, nothing fancy. It doesn’t need it.

The site is well written, honest, and passionate  — and his service is Free. So why not?

Only a couple reasons why you might want to stay away.

1. If you are like me, a sponge for precious metal content and particularly interested in the how bearish signals manifest.

(Yes, bearish! In fact, I  am so bullish that I have become a skeptic by default. I crave any analysis that depicts the downside scenario).

2. The other reason to tread carefully, outside of the time-sync in if you choose to read the content — is that when the volatility swings against the trend, you may not find the emotional support you need to retain your focus. I’m just saying because I know.

The way these (all) markets are traded on a daily basis is criminal and so far from natural that its a wonder that the whole thing does not blow apart tomorrow.

Take a look at Bill’s silver page here.

Or check out the article that first alerted me to his site about silver’s most important price point right around one of the more difficult moves to endure.

Better yet, here’s the Mogambo Guru — also a Downey follower — who always serves to put things in perspective.

Those three links plus the one below ought to give you what you need to help you decide for yourself.

Bill provides an excellent, free resource for dabbling deeper into the technical aspect of silver (and gold) trading. Or, take a look at his long-term strategy for silver here.

Bottom line:

Taking physical possession practically eliminates the mouse click in times of despair.

But you don’t have to pretend to be disinterested in the day to day or month to month evolution of the technical perspective.

Worst case is that you end up enduring a dose of bearish reality. Best case, you find a short-term motivation to buy a few more coins.

If you stand the heat and you like to check the price or guess the action short-term…Or if you want to get a sense how the technical crowd keeps up with the market, I urge you to give Bill Downey’s site a try.

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Update: 1-20-2010

Mr. Butler was kind enough to clarify his prespective on the difference between Silver and Gold.

Here’s what he had to  say…

Gold had a mini-rally of $5 during yesterday’s trading, but overnight has sold off $9…

I want to make something perfectly clear, that I’ve talked about before regarding Gold… When I talk about Gold, I’m also talking about Silver… I just don’t want to have to type Gold and Silver every time I’m talking about the precious metals… Silver is another store of wealth… In the December Currency Capitalist, I talked about giving the gift of Gold, and teaching whomever you gift it to, the lessons of wealth building… When my older kids were youngsters, I bought them Silver coins, for I could not afford anything else then… Those Silver coins have proved the point of providing a store of wealth, as they have never gone to zero, and have gained in value over the years!

Thanks Chuck!!

*******************************

What can I say?

I nearly fell out my seat the morning when I read Chuck Butler’s, “Daily Pfennig” where, in a mere instant, he had served up  – and efficiently denied, my beloved silver its proper place in the limelight…

Nevertheless, bullishness manifests in mysterious ways, and (perhaps) we should be thankful for the fact that silver is overlooked and misunderstood by the likes of many – and especially people who (we think) ought to know better.

That is part of my rationalization for sticking with the Pfennig.

The other part is that I just like Chuck.

And, you probably will too.

So why would a silver coin bug like yours truly be so interested in this quick and daily synopsis of currency news?

Here’s why:

Currency traders are technical, but the world is so big that they can never take their eye off the fundamentals.

No matter what, the fundamentals always catch up with the markets.  And, you don’t get much more fundamental than silver.

In addition, the heavy technical aspect to currency markets lends itself to being a good place for getting some training in the language of the markets. You can then apply the lessons to other markets.

And lastly, currency trading is ultimately about money trading and silver has always been money…

Oh yeah, I almost forgot — Not anymore, according to Mr. Butler.

More on that in a  moment.

First a brief overview about the Daily Pfennig and Chuck Butler:

This is a free and fun 10 minute read without much at all in the way of direct ads –

Mr. Butler is a great writer. Funny, friendly, and easy to follow – yet full of vinegar and controversy.

The Pfennig always starts with a personal note to warm up and ends that way as well.

He probably takes some heat for this, but I’ll bet a few silver coins that this is one of the main reasons for his success and thousands of loyal readers.

Essentially, the Pfennig (a penny for your thoughts) was designed to give folks on the trading desk an early insight and flavor before the markets open.

It ends up being a really good way to get a quick re-cap of the news…with the focus on world currencies or the macro-perspective.

Why does a silver investor need this?

Well, us little guys always need to stay a step ahead.  So few seem to get it that we can never be too sure that when discussing gold — an analyst also means silver. You need to be careful in making this assumption as I believe the real gold analysts understand the distinction between the two precious metals.

Currencies are important for a silver investor because Silver is/was  currency.

And I know that “currency folks” are mainly talking about fiat currencies, but that is actually the point. In fact, most currency analysts put gold in the currency category, albeit with super-natural status.

Mr. Butler recently (and rightly) took up reading the Creature From Jekyll Island (another time I almost fell out of my seat) and has since been referring the Fed as the Cartel. You GATA love that. Another huge reason to follow him, regardless of my silver gripe.

Anyway.

Understanding how currencies are traded, printed, and manipulated provides insight into the daily practices of centralized monetary policy and part of that mission is to bash confidence in real money.

But, understanding the value of international currencies requires a similar analysis to that which you would apply to a company stock or perhaps a commodity — like silver.

But in case you thought I forgot — silver is also money!

Mr. Butler is a big deal in the FOREX world. Formally of Mark Twain Bank, he is now president of EverBank in St. Louis and if I ever hit really big, I’ll probably open up one of their “market safe” CD’s. (That’s not necessarily a plug, by the way).

Mr. Butler is a character. Like an old friend from the neighborhood who may invoke rock-and-roll song lyrics throughout the middle of an important rant or upon delivering these missives, he is very likable and probably would prefer you call him Chuck.

Nevertheless, he disappointed me on silver.

In a recent Pfennig,

“As I said earlier, Gold reached $1,218 yesterday… Kristin mentioned to me that Silver has risen 69% this year, but all everyone ever talks about is Gold, and wanted to know why…

Well… Silver is another excellent choice of a store of wealth… But, it’s just not Gold! There are a number of reasons for this, but the most compelling one is that Gold used to be money, and to many, it is considered to be the only real currency… The practical reason is the fact that if you wanted to carry Gold in your pocket, two coins, worth $2,400 would be just fine… But if you wanted to put $2,400 worth of Silver in your pocket, you would need a lot of people’s pockets to help you carry it!”

At least he said “excellent choice as a store of wealth”.

And no, it’s not gold — it’s more important than gold. Its everywhere and soon silver will be “no where”.

And there is already less silver than gold.  Maybe he can have Kristin do a little project on silver supply.

From the keys under Mr. Butler’s (self-proclaimed) “little fat fingers”, to the refrigerator, washing machine, IPhone, cell phone, silver is in a much of the stuff we use on a daily basis in the industrialized world.

This also includes airplanes, hospitals, medicines, and plastics!

I know you can’t eat it, but there are small amounts of silver in all this stuff that no one thinks about and totally takes for granted – like all the electrical panel switches in your house that magically work every time you flip the switch.

Why do you think central banks got rid of their silver? They sold it to fuel all of these nice industries.

But don’t forget about the strategic uses- the military needs silver badly in everything from batteries to the lubrication on the jet-engine ball-bearings.

It’s always about the ball-bearings.

I’m not so sure that silver has been actually discontinued as “money” – and certainly not because central banks don’t keep it any longer. Are we to assume that because the The Bank Cartel (by Treasury proxy) sold it — that it is no longer money?

It’s funny that all the silver I own was either circulated as money, looks like money, and feels like money. It says in the US Constitution that silver is money. And I can go sell some at the coin shop and get some paper money to buy stuff with…

And finally we come to the practicality of silver versus gold.

I like traveling light as much as anyone, but $2,400 of silver when Mr. Butler dropped this on (me) his readers was about 6 rolls-worth of silver rounds  – or about 10 pounds.

I’m not trying to brag, but on more than a few occasions, I’ve carried this much silver home in the back-pack that I was also carrying my daughter (25 pounds) in — on my way back from the coin shop! And that was for fun.

Maybe I’m not the average reader, but I’ll bet more than a few Pfennig readers could handle 10 pounds of silver in a paper bag to the car.

It’s good exercise besides.

Did I mention that silver is more rare than gold?

Okay, you get the picture. I could go on and on and on.

I’ll send this over to Mr. Butler. Maybe he’ll share this with his readers, creating a new rush for physical silver that finally pushes the already tight physical market over the edge, sending all the shorts running for the hills and we’ll get this adjustment back to fundamentals over with. And then I can put some into one of those currency accounts — maybe have Mr. Butler pick one for me…..

And of course, I’m not mad. I still love Chuck!

Even though this has been  surreal to say the least.

To almost see “my team” in the spotlight.

And that moment, like a slow motion train-wreck, where silver was lifted it up so high for all those many thousands of readers to see, just long enough for it to be “destroyed” as a credible, and for once, untarnished poor-man’s asset.

The horror!

I’ll keep reading Pfennig (and so should you), pretending that when Mr. Butler brings up gold -that he is also talking about silver — sort of — even if he doesn’t know it.

I’m used to it.

It’s the way the world works.

In the meantime, here’s a more formal take (and shameless plug) about the value of silver and gold.

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First a little bit  about Monex.

The Monex companies have been around for a long while and they are indeed, an established leader in America’s gold and precious metals investment space. They’ve done over $25 billion in precious metals transactions and have an excellent reputation for customer service.

For the silver bug who doesn’t mind placing a phone order, they offer government-minted coins, 90% and 40%, and bullion bars.

As far as silver rounds…They don’t go there.

As a small investor who can only really afford 10-20 ounces at a time,  silver rounds are nice way to hold the pure (.999)  metal at a lower premium.

We don’t really care too much about the numismatic value and we like that rounds look enough like coins that they could be traded in a worse-case scenario. If that time comes, I have faith that people will be able to figure out what the weight is worth.

We reviewed 6 weeks of Monex updates and alerts and they’ve grown on us.

Heck, we have even come to depend on them for a nice weekly wrap-up, and the great collection of quotes from some of our favorite market commentators.

For example, here’s one from Richard Russell  that stood out from the August 14, 2009 wrap-up.

QUOTES OF THE WEEK:

“From Richard Russell…What is the US government’s attitude toward allowing its citizens to own gold? . . . I believe the US government WANTS Americans to own gold. Thus, if the purchasing power of the dollar declines, there will be less public outrage if the public is protected by owning gold! How are you going to keep the public quiet if an administration devalues the dollar? Encourage them to own gold, which appears to be the Fed’s and Washington’s policy. Will the US call in gold again as they did in 1934? Forget it! It’s not going to happen.”

You get the picture. And not all of them are this long.

And they also choose from the likes of Ron Paul, Steve Forbes, Warren Buffet, Bill Bonner, and Jim Sinclair.

And, of course, we were more than pleased to see twice-mentioned (in 6 weeks), two quotes by silver guru, David Morgan.

Bravo Monex, for keeping silver on the agenda – as the silver bug can’t get testy about being left out and treated like a second fiddle.

So in each Monex weekly overview you get:

• Price Range For Gold, Silver, Platinum, Palladium

• Support And Resistance price levels

Support and resistance levels are interesting – even though a long-term investor doesn’t have much to gain by beng a ‘chartist’.

• And News Developments + Quotes

We love clear and concise economic overviews as they pertain to precious metals.

And you also get infrequent Monex Alerts from time to time when significant news develops in the markets – such as the recent Monday take-down in gold and silver. Monex is happy to remind us about buying on the dips – as if we needed reminding.

If you’re like me, that kind of reminder just feels like salt in an open wound.

We know that every long-term investor (especially in the PM’s) needs to have some healthy respect for the daily price and yes, the blatant and coordinated take-downs are tough to ignore.

And okay, a price dip for a regular guy without a while lot of cash serves as perhaps the last opportunity to accumulate the metal…but no one is perfect and Monex is, after all,  a business.

But we still highly recommend this FREE MONEX newsletter and appreciate its weekly arrival.

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After all, anyone who prominently displays the great Mogambo Guru is a friend of ours – and on video to boot!!

The crew at Gold & Silver, Inc, physically out of Jackson, WY are one of us.

It is a pleasure to see a class act in this space that allows the contrarian viewpoint a place to breath. Especially, for those who, in contrast, were originally indoctrinated by the confusing messages over at Kitco where the main character seems to represent the conspiracy against precious metals.

We really like the logo at goldsilver.com too! And of course, we think it is a hidden reference to the true gold:silver ratio (based on supply) – silver being more scarce, and hence, more valuable than gold.

These guys work on selling physical gold and silver bullion, and if we had an extra $10-20,000 we would be happy to go the website, and order some to test out the process. They seem like  stand-up fellows.

Alas, we silver bugs tend to buy in smaller quantities and while the friendly folks, including Mike Maloney, author of the must-read-for-anyone-reading-this, “Guide To Gold and Silver Investing“, are planning to accommodate smaller orders sometime this year, so far the minimum size is 500 ounces for silver.

Update 8-17-09: Good news. See here, see here. They’ve done it again!

We’re okay with that, because the typical silver coin investor will walk into a local coin shop with a few extra bucks to buy on the dips – which seem to be occurring less and less, and according to a lot of the buzz (Ted Butler),   could be over for a while.

With that last part in mind, I would suggest signing up for the goldsilver newsletter NOW, and then spending another few hours or more going through all the free articles, news, and videos at the website, if you haven’t yet opted for this route – which is really the only way left to truly protect your assets from the ravages of inflation, which the powers that be seem hell-bent on creating, without moving to another planet.

And if you already have your silver (or gold) bullion, we suggest going back to goldsilver.com to review why it is that you are so smart in not only protecting what little you have, but by also positioning yourself for perhaps one of the greatest investment opportunities of a lifetime.

In the words of the Mighty Mogambo, “Whee!! This is investing stuff is easy!!

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