History Tells Us That Silver Will Lead

London (Jan 23)  Summary•Silver above $17.00 per ounce. •$17.30 and $17.57 are critical levels. •Silver needs to lead the sector.

•The big move is coming. •Speculative silver.

Silver has always been and will always be one of my favorite commodities to trade. Few commodities can compare when it comes to the potential for reward as gold's little brother. My days of trading silver positions of more than 200 million ounces are long over but I still love to dabble in the market every now and again because when silver decides to move, it can pick up a head of steam on the up or downside.

Silver closed 2016 at $15.96 per ounce and now it is over $1.00 higher. The lows at the end of last year were at $15.675 and silver traded to highs last week of $17.36 which means that gold's little brother has quietly rallied 10.75% in one month. In 2016, it took silver until February to post that gain so like gold, silver is ahead of schedule if it plans to go into bull mode again in 2017.

Silver is a highly speculative metal and it tends to attract trend following traders that come to the market like a herd of stampeding cattle. Those traders are still sitting on the sidelines but there are some signs that they could be getting ready to come back very soon as silver is back above the $17 per ounce level. Silver loves to sit on the sidelines and then, all of a sudden and sometimes out of the blue, explode higher or lower and a move like that could be in the cards in the days or weeks ahead.

Silver above $17.00 per ounce

A silver price above $17 per ounce is no big deal, after all gold's little brother was here on December 15. However, the brutal selloff that took silver down to lows of $15.675 on December 20 caused many to abandon ship in the market and turn their focus to other more interesting and bullish commodities.

Source: SeekingAlpha