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The Silver Bullet

Commentaries & Views

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’.    

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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