The cost of silver remains at the mercy of the big banks that make of most of the brief side at COMEX - which is still the primary paper pricing mechanism for silver.
Could silver costs go above $ 50 and beyond this year - and then possibly retest $ 50 as a flooring?
Concentration Matters
Keep in mind that it is the concentration that matters most for the price of silver. It does not matter if those big silver brief positions are hedged or if a long exists for each brief, because that is a fundamental aspect of market driven rates.
All that matters is that one or two entities hold the majority of that short position and for that reason they can and do affect costs. This is the same story that has actually been informed over and over by Ted Butler and GATA for years.
For comparison purposes, as well as when the concentration is computed without getting rid of swaps, the existing level of brief market concentration eclipses the amount of silver which the Hunt brothers held long many years ago and were subsequently persecuted for.
Silver Tests Major Moving Averages
If these dominating banks determine to let silver rates run through the closely enjoyed technical moving averages - which it looks like they might - they could achieve this merely by covering their brief positions. Such purchasing would push the market significantly greater and signal various weak longs to enter. The marketplace could get to $ 50 in rush.
The price of silver has already broken above its 200 day relocating ordinary and is now trading just below its 100 day moving average. A break above the 100 day MA would usually be considered a bullish technical signal.
Silver stays badly undervalued and has actually been inexpensive for years. However, silver has actually continued its handled retreat from its April 2011 high of $ 49.77, although it has actually repeatedly held its worth in the $ 26 area.
If silver's next go up through $ 35 is shorted the entire method up by the huge bullion banks - which will be clearly documented by the COT report - then the market will probably remain within the relatively tight $ 26 - $ 37.50 trading variety that it has been stuck in since September of 2011.
Timing the Silver Rally is Difficult
It stays challenging to time any of the silver rally situations or suspect about when macro problems will finally begin to have an effect on the marketplace price of silver, but greater prices for silver do seem more most likely than not over the medium and long term.
The silver market has one or two focused shorts trading against a heterogeneous team of longs in the world's primary silver rates mechanism. This seems both unreasonable and illegal, and it produces cost steps contrary to where technical signs say the marketplace must trade.
Could silver costs go above $ 50 and beyond this year - and then possibly retest $ 50 as a flooring?
Concentration Matters
Keep in mind that it is the concentration that matters most for the price of silver. It does not matter if those big silver brief positions are hedged or if a long exists for each brief, because that is a fundamental aspect of market driven rates.
All that matters is that one or two entities hold the majority of that short position and for that reason they can and do affect costs. This is the same story that has actually been informed over and over by Ted Butler and GATA for years.
For comparison purposes, as well as when the concentration is computed without getting rid of swaps, the existing level of brief market concentration eclipses the amount of silver which the Hunt brothers held long many years ago and were subsequently persecuted for.
Silver Tests Major Moving Averages
If these dominating banks determine to let silver rates run through the closely enjoyed technical moving averages - which it looks like they might - they could achieve this merely by covering their brief positions. Such purchasing would push the market significantly greater and signal various weak longs to enter. The marketplace could get to $ 50 in rush.
The price of silver has already broken above its 200 day relocating ordinary and is now trading just below its 100 day moving average. A break above the 100 day MA would usually be considered a bullish technical signal.
Silver stays badly undervalued and has actually been inexpensive for years. However, silver has actually continued its handled retreat from its April 2011 high of $ 49.77, although it has actually repeatedly held its worth in the $ 26 area.
If silver's next go up through $ 35 is shorted the entire method up by the huge bullion banks - which will be clearly documented by the COT report - then the market will probably remain within the relatively tight $ 26 - $ 37.50 trading variety that it has been stuck in since September of 2011.
Timing the Silver Rally is Difficult
It stays challenging to time any of the silver rally situations or suspect about when macro problems will finally begin to have an effect on the marketplace price of silver, but greater prices for silver do seem more most likely than not over the medium and long term.
The silver market has one or two focused shorts trading against a heterogeneous team of longs in the world's primary silver rates mechanism. This seems both unreasonable and illegal, and it produces cost steps contrary to where technical signs say the marketplace must trade.
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