James Mc…
Silver: sneaky bullish
Bill,
The holiday rally in the metals, but mostly silver, is surprising. Silver has risen $1.15 over the past 10 trading days since December 12. While it has been entirely “orderly”, as bullion bank analysts love to see it, it nonetheless has gone up in thin trade when by all rights it should have been on lockdown. It looks like silver will have to drag gold with it if both continue to rally. We haven’t remotely worked off the oversold conditions from 2 weeks ago so there’s still a lot of room to keep the rally going. As we all know clearing $17.25 will be the next hurdle, but as we also know when silver goes on a tear big bad numbers suddenly become irrelevant.
It would be nice to be above $1300 & $17 by Friday. That would set up next week nicely. If the Bahamian Bobbleheads who are massively short decide to dutifully obey their little black boxes it will get exciting in a hurry. Keep in mind the silver/gold ratio is still at 77- 1, WAY high by historic standards. Even a reversion to 60- 1 puts silver at $21, assuming gold stays here at $1290. If you remember back in 2011 when gold reached $1980 and silver almost $50 the ratio fell to 39-1. Silver would be at $33 right now if that ratio was in play, and further proof of the kryptonite nature of silver.
Anecdotally I was talking to a person recently who had no idea of my interest in PM’s. He casually mentioned he had just bought some physical silver for the first time. When I asked him why he chose silver he said at $16 it HAS to be grossly undervalued. When I asked why not just buy futures he said he didn’t trust them. Maybe the new investing trend for 2018? Could there be thousands of people already looking for the next ground floor Bitcoin opportunity? Stay tuned in 2018, we may just see those GATA rockets on the launchpad again!
James Mc
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