The Silver Bullet
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Shown here is a six month chart of the silver price, courtesy Stockcharts.com
The price has been rising since December, inside the blue channel. For the past few weeks the trend has been sideways, but Tuesday’s breakout at the blue arrow is expected to mark the start of the next rally.
Here is what is causing that breakout to occur:
This chart is courtesy COT@softwarenorth.com and it shows the ‘net short’ position of commercial silver dealers at 14,000 contracts, the lowest number for at least 12 months. As a percentage of open interest the number is very bullish at 7%. Nine weeks ago the POI number was at 9% and silver rose +1.00/ounce. Back in July 2017 the number was at 10% and silver rose +2.50. Will history repeat? We will have to wait and see, however - ‘consider me to be in expectation’.