Silver Stuck In Quicksand
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Silver appears to be in the twilight zone, stuck in a very tight range. The commercials are buying silver, selling gold and yet the ratio continues to expand, with gold now 82 times over silver.
On the surface, the silver Commitment of Traders report appears to be bullish. However, the charts are not playing out that way. Silver is in an extraordinarily tight range, keeping the silver bulls at bay.
The silver bulls are getting frustrated as silver wanders aimlessly in a tight range. There is a breakout coming and based on the ratio to gold and the economic conditions, expectations are silver will break out to the upside.
This may be just the time to sell gold and buy silver; the rubber-band ratio is dramatically stretched. The risk-reward ratio favors owning silver, the chart pattern suggests a huge move is coming and for those reasons, we expect silver to break out to the upside. The only question is when.
Keep those stops tight.