Silver - A Bullish Week

June 8, 2019

London (June 8)  Just when it looked like silver was heading for a test of $14 per ounce and perhaps a test of the November 2018 low at $13.86, or even the December 2015 bottom at $13.635, the price turned around at the end of May and put in a bullish reversal on the weekly chart, by only two ticks. Silver fell to a low at $14.245 during the week of May 28, which was eight cents below the prior week's low, and closed the week at $14.56 per ounce. The high from the previous week was at $14.55. While the move was not overly convincing, it did come on elevated volume which is typically a validation of the bullish trading pattern. Last week, silver traded above the $15 per ounce level for the first time since the final week of April as gold posted an even more significant gain. Silver had a bullish week, and time will tell if the price action is finally the beginning of a long-overdue recovery in the silver market or if it is set up for yet another disappointment and failure.

If silver is now ready to blast off to the upside, it could be the perfect time for the Velocity Shares 3XLong Silver ETN product (USLV) but be careful because if silver is set up for another failure, the product will lose value quickly.

Passions run high in the silver market - lots of comments on my last piece

Last week, I published a piece titled "Conspiracy In Silver - A Delusion." The article generated more comments than most of my articles on commodities, and many of those who chimed in demonstrated their passion by taking me to task for my opinion. One comment said that I should be tossed off Seeking Alpha as a contributor for "disinformation." I believe that Seeking Alpha is a portal for all opinions, and let me be clear, my articles are only my opinion based on both my interpretation of current market events, and my experience in the commodities, forex, and other markets dating back to the early 1980s. I write because I wish to share my experiences, not to infuriate readers. In some cases, it seems that my last work on the silver market achieved the latter.

I apologize to anyone I may have offended with the piece or my responses to their comments. I have not changed my opinion, which is based on many years of running one of the leading bullion dealing houses. During that time, I learned a lot about the depth and breadth of the silver market. Subscribers to my service have read the story of my involvement in one of the most substantial long positions in the silver market in modern history. I respect the opinions of others, and while I am quite sure that the world's leading bank is not involved in a conspiracy to hold the price of silver down, I would be shocked and more than disappointed if those espousing a contrary opinion turned out to be right. When it comes to those who disagree with my opinion about a vast manipulation scheme of the silver market, I do agree with them about one significant issue. Silver is hard money, and the recent price action does nothing to erase its history or future as a precious means of exchange.

Silver is a commodity that has a long history of provoking passions. Any student of US history knows that a primary issue during the 1898 Presidential election between William Jennings Bryan and William McKinley was backing the dollar with silver or gold. McKinley won, and so did gold. Silver has a long history as a loser, and perhaps that is why so many are so passionate about the metal.

Silver flirted with $15 over the past week

The price of silver rose from the ashes last week. After hitting a low at $14.245 on the nearby COMEX futures contract during the final week of May, the price put in a bullish reversal and probed above the $15 per ounce level during the first week of June.



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