Silver Price Tries To Make A Move

June 12, 2018

London (June 12)  Silver is the most speculative of all precious metals as memories of rallies to over $50 on 1980, and $49.82 per ounce in 2011 continue to linger in the minds of trend-followers and other market participants. In late 2001, the price of the precious metal fell to lows of $4.015 on the nearby COMEX silver futures contract. Ten years late, the price appreciation amounted to more than a ten-bagger for those with the foresight to buy at or close to the lows and hold the metal for a decade. There was little or no pressure for those investors or traders from 2001 through 2011, as the price never returned to the 2001 bottom. In fact, since the high in 2011, silver has only managed a move down to a low of $13.635 in late 2015 and was trading at just under the $17 level on Monday, June 11.

Few commodities offer both liquidity and significant volatility which makes silver a metal that stands in the limelight at times. Even though the silver futures market has been making lower highs since it trades at just over $21 per ounce in July 2016, there are signs of strength in the market over recent months.

Silver only made a marginal new low for the year

On May 15, gold which is the leader of the pack in the precious metals sector because of its liquidity and position as a financial asset with central banks holding the yellow metal as part of their foreign exchange reserves fell to a new low for the year. In 2016 and 2017 the yellow metal made lows during the first days of the year and never challenged their bottoms for the year. However, 2018 is a different story and in mid-May gold fell to lows of $1281.20 per ounce on the nearby futures contract after not violating the $1300 level during the year.


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