Silver Struggles Continue
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Silver continues to struggle as it continues to test the lows. The longer-term chart looks fine but on the emotional short-term charts, the struggles continue. There are many questions that arise from the recent activity. Is silver being more punished by Bitcoin than gold? If economic growth is so good, where is the demand for the industrial metal silver?
Silver’s performance has been less that mediocre for many reasons. The lack of economic growth is one and the commercials are selling silver relentlessly. There is a huge short interest in silver for no apparent reason other than the commercials think they can bully the metal lower.
When general market conditions become as slow as they are now, it forces the commercials to do dumb things and the size of their short position here is dumb. They may be right in the short run but with the bear market in metals over, expect a big rally in silver and the perfect trap for the commercials to get pounded. The $16 area should hold, and higher prices are coming.