Before I draw the ire of silver bulls in my comments section, I will say that I do believe a sharp, tradable bounce in the metals and miners is now imminent. I sold my gold ultrashort ETF inside 12631 last week to lock in profits as the initial bottom-fishers have now mostly been flushed.
But now the silver ETF is fast approaching its 2010 primary breakout at roughly $19, where the presumption is that the metal will at least come to terms with that significant price area. The closer and faster it gets there, the better I like the odds of the entire precious metals and miners offering up a far more impressive snapback rally than what we saw late-last month. Having said that, if stubborn dip-buyers prevent a bloody gap lower tomorrow on the SLV instead of stepping aside, I suspect we could be in a for a long slog lower yet.
Either way, we are still looking at a potential multi-year top below $26, which means even the fastest and most furious of rallies are likely to be short-lived.
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Great observation. I tried to catch a bounce in SLV not long ago and barely got out with a Benjamin. My thought was it was oversold, but apparently not OS enough.
What I don’t understand is the disconnect between the paper silver prices and physical silver prices? I understand at least US Silver coin sales have reached sold-out conditions this year, and junk silver is selling at a premium.
Also, I just learned silver is used on solar panels. If we see demand for panels continue to grow then I assume that will start propping up silver prices, though I don’t know how long that will take.
My experience is just the opposite – at a large coin show this weekend I saw plenty of silver for sale, and didn’t see too many buyers even with low premiums. The dealers think prices will go even lower and don’t want to get stuck with it. That’s a change from a few weeks ago. But, I’m not sure what it all means.
What monster dies from the silver bullet? Never can remember. The absolute hatred for the pm space is interesting. Usually there is a policy or fiscal change that brings on such a stance. What has changed? Other than the old getting older.
Thanks Chess.
$dslv baby!