1 October 2014

Opportunity in Silver Market?

Silver, Gold and many commodities have continued to come user pressure this week. According to a blog post written by Trader Dan Norcini, the Goldman Sachs Commodity Complex has hit a new 27 month low.

Despite this, positions in exchange traded silver products are near record highs according to an article on Bullionstreet.com. What is interesting is that the same article is reporting that the non-commercial short interest in the futures market is also near record levels. 

No doubt that the sentiment in Silver is extremely negative right now. Interest amongst the general investing community in Silver is waning. This is largely due to Silver being viewed as a industrial metal right now as opposed to a monetary metal. 

Silver is a Potential 10 Bagger From Here?

The above title was taken from an article that appeared in etfdailynews.com. In the article, John Embry of Sprott Asset Management, was quoted when referring to opportunities in the precious metals saying “this is the finest opportunity I’ve seen in my career in the sector”. 

Precious metals analyst Clive Maund, in a recent article, posted a 15 year chart of the Silver market to make a case that Silver has not broken down from it’s long term uptrend. He makes the argument that while Silver has been in a bear market since May 2011 that “in the larger scheme of things this may only be a severe correction within an ongoing major bullmarket”.

15 Year Silver Chart from Clive Maund

As we have said in the past just because sentiment is poor right now does not mean that prices will not go lower. Everyone needs to make their own decision on what is best for their particular situation. 

This is very likely the capitulation phase of the market that will shake out all of the investors who listen to their advisors. When the market does turn, Silver has the best chance to be the big winner out of all the precious metals.

Author: celticgold.eu

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