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’.¬† ¬†¬†