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Silver Short Squeeze in Progress

Commentaries & Views

A few weeks ago, I alerted you to the bullish situation being created in the silver market since the global equity panic ended on February 9th. A few hours ago, the silver price began to take off like a scalded cat without any recognizable catalyst, other than the reasons I spoke of in this article. Based on the extreme bearishness of the speculator positions in the latest silver Commitment of Traders report, the price of silver can rally very quickly and far beyond what fundamental and technical analysis projects."

This silver short squeeze could easily drag gold along with it and break the safe haven metal out of a huge rounded bottoming pattern which has been building below $1375 for nearly five years. The rounded bottom in the GDX, which I alerted you to last week, may have been the warning of these bullish developments taking place this morning.

If you have positioned yourself accordingly while this set-up was taking place, I would strongly advise ceasing to trade until the sector becomes extremely overbought on a weekly basis.

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.