Silver Market Update

September 9, 2019

Silver reacted back sharply last Thursday and Friday after a parabolic blow-off top. This was not a final top, but it does indicate that silver needs to take a rest and consolidate / react back, probably for at least several weeks.

The latest silver COT is also showing a 1-year record extreme for positions, giving grounds for caution…

Click on chart to popup a larger, clearer version.

Although the longer-term Hedgers chart for silver is not at the extremes that it reached in 2016 and 2017, readings are also at levels that give grounds for caution, especially considering that silver just did a parabolic slingshot move.

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Chart courtesy of sentimentrader.com

The conclusion is that silver has started a corrective phase, and, given the nature of the beast, it could be quite scary for the unprepared once it breaches the parabolic uptrend, but with gold especially having signaled the start of a major bullmarket any such corrective action will be viewed as presenting a rare opportunity to buy silver investments at very good prices ahead of the major uptrend that is expected to follow.

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Silver has 47 protons and 61 neutrons