Silver Price - All Quiet Before A Storm?

December 7, 2018

London (Dec 7)  The silver market has been a real snoozer these days. Silver has a long history as a highly volatile commodity. When it starts to move higher or lower, it often attracts lots of speculators looking to hop onboard a trend that will offer a significant percentage change in the price.

Silver can also go to sleep for extended periods, frustrating longs and shorts with false breaks to the up and the downside. Recently, the silver futures market had been probing below the $14 per ounce level on the nearby COMEX futures contract. The decline to a low of $13.86 on the expired December contract in mid-November likely caused those looking for a break to the downside to short the market in hopes of a break below the December 2015 low at $13.635, which is the critical support level for the price of the precious metal. However, silver failed to experience follow-through selling, and the price bounced back over $14 per ounce and was trading at the middle of its trading range on Thursday, December 6. The December futures rolled to the new active month which is March as we are now in the final month of 2018. The silver market is sleeping as the holiday season is upon us, and the trend of lower highs and lower lows remains intact in the silver futures market.

With the trading ranges in the silver market so narrow these days, those who are devotees of the silver market are turning to leveraged products to magnify the small price bands these days. The VelocityShares 3X Long Silver ETN (USLV) and its bearish counterpart VelocityShares 3x Inverse Silver ETN (DSLV) are products that can make a dull market more interesting during periods of low price volatility.

Silver sits at just under the $14.45 level

Silver was trading at $14.52 per ounce on Thursday, December 6, on the March COMEX futures contract.


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