Weekly Chart

Silver 200 MA is 11.88...

I simply repeat what I wrote last week but have added more commentary about several aspects of the current situation in this weeks commentary (more...)

Technically the weekly chart showed a trend reversal over the last couple of weeks.  Some analysts are stressing the importance of this turnaround, and I believe they are correct in terms of a longer term horizon.  For the shorter term I am considering price points of a retest of weakness, but do not expect any new lows as anybody with margin at all has been liquidated and physical demand is asserting itself and any further drop in price will only increase that demand, which is being met with increasing reports of shortage at current pricing levels already.

I repeat that my opinion is still that the silver price is currently looking for a base in physical demand, as is gold. That is the point at which paper trading games become irrelevant in terms of any further selling. I find it interesting in this regard that Kitco raised it's bid (purchasing price) a couple of weeks ago on silver maples and eagles "to reflect current strong demand". I read that as having trouble meeting (delivery) physical demand, while trying to honor the (paper set) spot price.

Silver, the queen of volatility, continues to exhibit it's temperament with little regard to underlying and opaque fundamentals. It is a small market and can be whipped around like the end of a daisy chain. Only investor demand or sudden lack thereof can affect a market as we are witnessing. Expect more...