• Gold: 1,563.82 4.96
  • Silver: 17.82 -0.02
  • Euro: 1.106 -0.004
  • USDX: 97.69 0.19
  • Oil: 55.56 -0.64

Precious Metals Big Picture, as Silver Gets on...

While many are talking about major new bull markets in gold, silver and the miners I find it safer to set realistic goals within a still very bullish outlook. After all, we became bullish in November, had to retrench due to over-bullish sentiment and fading fundamentals in February (both situations linked here) and then have been back in the bull seat since the gold stock launch as noted on June 3rd. The point being, I have nothing to prove to you; nothing to woo you and tempt your greed impulse about. NFTRH has simply called the sector in line with its fundamentals and technicals, and that is what we continue to do as of this day. We chart 20 quality miners (+/-) each week and note short-term targets, resistance, etc. for the miners, gold and silver routinely.

Silver Seems To Shock The Market

Well, as I think about it, I am starting to understand the shock if you had been reading what everyone has been writing about silver. Whereas the rest of the complex has already moved strongly higher, silver has been significantly lagging. And, I have been hearing one excuse after another as to why it is lagging, such as silver “has been acting as an industrial metal.”. But, last I looked, the economy was humming along. So, why would an industrial metal be lagging? Moreover, it certainly did not act like an industrial metal on Tuesday.

Silver rallies to its highest in over a year,...

"He said gold and silver investors have not missed much of this rally, though in the short term the rally may be overextended when it comes to some miners. Over the coming months and year, however, Spina believes he sees “one of the best risk/reward [opportunities] in the gold/silver sector since I started buying juniors as a teenager, some 25-[plus] years ago.”

Silver's Promising Surge

Buyers surpassed a 15.840 target I'd flagged earlier in the week with such ease that a test of a more daunting obstacle at 16.470 seems all but inevitable. That's where September Silver double-topped earlier in 2019. If the rally should exceed these peaks as easily as did the 15.840 pivot today, that would greatly strengthen the case that a powerful new bull market has begun. More immediately, look for a short-term finishing stroke to 16.190, the Hidden Pivot target of the pattern shown in the chart.

Gold & Silver Miners: The Hot Action Is Now

- Please click here now. Double-click to enlarge this daily silver chart. Like Rodney Dangerfield, silver doesn’t get much respect, but that’s because inflation has yet to really surge. - Having said that, the silver chart is beginning to look quite bullish. A breakout from an inverse H&S bottom pattern has occurred, and the pullback was flag-like. - The target of both the flag and the H&S pattern is the $16.50 area highs of February.

This Needs To Happen Before Silver Really Takes...

What is significant about this peak-level in the Gold/Silver ratio is the fact that it is so close, and follows the 2016 bottom in interest rates. These confirm that some very serious credit woes are coming. It is likely on a scale not seen over the last 100 years. We can expect a rush for real monetary assets as never seen before. This will put silver again at the forefront of money and monetary solutions.

A Pretty Ugly COT Report in Gold. Silver..

Also in silver, 26 non-U.S. banks are net short 36,928 COMEX contracts in the July BPR...which is up a decent amount from the 27,599 contracts that 21 non-U.S. banks were short in the June BPR. I would suspect that Canada's Scotiabank [and maybe one other, the BIS perhaps] holds a goodly chunk of the short position of these non-U.S. banks. I believe that a number of the remaining 24 non-U.S. banks may actually net long the COMEX futures market in silver. But even if they aren't, the remaining short positions divided up between these other 24 non-U.S. banks are immaterial - and have always been so. As of July's Bank Participation Report, 30 banks [both U.S. and foreign] are net short 36.5 percent of the entire open interest in the COMEX futures market in silver-which is up a monstrous amount from the 16.3 percent that they were net short in the June BPR - with much, much more than the lion's share of that held by Citigroup, HSBC USA, JPMorgan, Scotiabank -- and certainly one other non-U.S. bank.

If History Still Matters, Silver Is Poised For A...

It’s been a pretty good couple of months for precious metals, but more so for gold than silver. Both are up but gold is up more, and the imbalance that this creates might be one of the major investment themes of the next few years. The gold/silver ratio – that is, how many ounces of silver it takes to buy an ounce of gold – has bounced all over the place since the 1960s. But whenever it’s gotten extremely high – say above 80 – silver outperformed gold, sometimes dramatically.

Will Silver Soon Follow Gold’s Lead?

The super-rich and large institutional investors who are more apt to take contrarian positions in overlooked assets generally prefer gold over silver because it is more convenient for them to accumulate in large quantities. We are still in the stealth phase of a precious metals bull market. When we enter the public participation phase – and demand for physical bullion increases – we have no doubt that silver will shine.

These Two Charts Virtually Scream “Buy Silver”

Silver is currently trading around $14.84 an ounce. This is around 30% of its 1980 all-time high of $50. However, this is an incomplete representation of what silver is really trading at, relative to US dollars. When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its lowest value it has ever been (see chart below). Also, it is ridiculous that one ounce of silver cost $50 in 1980 when there were about 132 billion dollars in existence, whereas today it is only $14.84 at a time when there are 3 304 billion dollars in existence (note that I have used rounded numbers which created some distortion).