Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Hi-Ho Silver!

Commodities / Gold and Silver 2018 Mar 26, 2018 - 03:04 PM GMT

By: Peter_Degraaf

Commodities

If the latest COT report for silver gets any more bullish than the one released on March 23rd, commercial traders will have to go ‘net long!’   As it is, they reduced their ‘net short’ position to the lowest number in many years, down to just 4,000 contracts – barely 2% of the total open interest!  This is bullish action!   As recently as January 16th the number of ‘net short’ positions was 50,000, and the percentage of open interest was 26%.  (Charts are courtesy Goldchartsrus.com unless specified).


This chart courtesy COT@softwarenorth.com, tells us is that commercial silver traders, such as bullion banks and silver miners, think the silver price has hit bottom, and is likely rise from here.


  
This chart courtesy Zerohedge.com shows silver speculators at the largest short position in at least 28 years.  From a contrarian perspective this is very bullish. 

This chart courtesy Goldswitzerland.com shows a bullish wedge formation is forming.  An upside breakout will attract many buyers.


 
This chart courtesy Google.com shows ‘silver searches’ are beginning to rise up from a double bottom. 


  
This chart shows the amount of silver bullion that is backing various trusts and ETFs, has been rising steadily for more than two years. 

  
This chart shows the FED’s Financial Stress Index is rising up from a triple bottom.  During times of financial turmoil, investors tend to seek the safety provided by gold and silver. 


This chart shows US money supply just keeps on rising.  Newly printed money causes price inflation, providing energy for gold and silver to rise in price. 


This chart shows the seasonal tendency for the gold price to consolidate after a dip in March, followed by a steady rise into October.  (Disregard the red line which is dominated by a four year bear market). 


    
This chart shows the seasonal tendency for silver to provide buying opportunities during the spring season. These opportunities may not last long, if the latest COT report is any indication.  (Disregard the red line as it is dominated by a 5 year bear market). 

  


Featured is the daily bar chart for silver, courtesy Stockcharts.com.  The silver price has been slowly rising since December.  The RSI at the top and CCI at the bottom, are showing positive support for this uptrend.  A breakout at the blue arrow sets up a target at the green arrow.


  
This chart courtesy Stockcharts.com features UUP, the US dollar index ETF.  The price has been declining and a drop below the brown arrow is likely to mark the start of a rapid decline.  Since gold and silver are priced in US dollars, a lower dollar raises the price of precious metals. 

  
This chart courtesy sources listed shows the US stock market to be overbought, even with the current pullback.  As money begins to leave the stock market, some of it will trickle into the precious metals sector.  That is what happened in 2001-2002 after the stock market decline. 

Peter Degraaf is NOT responsible for your trading decisions.  Please do your own due diligence. 

By Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He issues a weekend report on the markets for his many subscribers. For a sample issue send him an E-mail at itiswell@cogeco.net , or visit his website at www.pdegraaf.com where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

© 2018 Copyright Peter Degraaf - All Rights Reserved

DISCLAIMER:Please do your own due diligence.  Investing involves taking risks.  I am not responsible for your investment decisions.

Peter Degraaf Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in