With gold and silver surging today, it appears silver is ready to race out of the starting gate.
Silver Ready To Race Out Of The Starting Gate
July 14 (King World News) – James Turk: Silver is acting like a thoroughbred that can’t wait to get out of the starting gate, Eric. It is chomping at the bit and anxious for the race to begin. The race – a new uptrend – almost started today when silver this morning climbed over yesterday’s high price. But it was beaten back toward $26 just like it has been every day for nearly a month, as seen on this chart of September silver.
Silver Has Been Struggling To Break And
Close Strongly Above $26
Silver Historically A Wild Market
Importantly, $26 continues to hold regardless of everything being thrown at silver by the silver bears and the shorts. So we have a standoff, with silver in a tight trading range and this silver thoroughbred still stuck behind the starting gate.
It is highly unusual for markets to trade like silver has been trading for the past month. That observation is particularly true for silver, which historically is one of the most volatile markets. The decline in daily trading volume and open interest over the past month is a sign that a lot of players have left the market during this period of low volatility, which is likely to end soon – which my gut-feeling is telling me may be this week. So we need to be alert here…
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Who Will Blink First?
Eventually one side has to blink to end the standoff. Given that silver is undervalued, my guess is that the bears will blink first, but they may try one more push to break support at $26 and use that opportunity to cover their shorts.
Even though a lot of shorts have been covered over the last several weeks as Open Interest dropped by more than 20%, OI is still over 150,000 contracts. That level is relatively high and nearly equal to the weight of silver mined in a year. So the next few days are important, Eric, but the outcome I expect will be the same. Either the shorts try to push silver below $26 before silver heads higher, or silver just starts heading higher from here.
***Also just released: Gold And Miners Surge, Plus Look At Some Industries That Are Thriving CLICK HERE.
***Also just released: Wells Fargo And Repo Markets Screaming Liquidity Crisis About To Unfold! CLICK HERE.
***To listen to E.B. Tucker discuss the recent panic in the gold sector and what investors should expect next CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the gold and silver markets and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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