Silver

Next month marks the 3-year anniversary of the bear market in silver that started in May 2011

The gold bull is just taking a giant breather during a very long bull market, which is the good news.

The gold price continued the previous week’s fall into Monday, which was the end of the first quarter of 2014

I have been revisiting estimates of the quantities of gold being absorbed by China, and yet again I have had to revise them upwards.

A look at Silver and its 3-year rolling performance through history…

Briefly: In our opinion short speculative positions in gold (half), silver (half) and mining stocks (full) are justified from the risk/reward perspective.

We most recently discussed the long-term performance of the gold/silver ratio only two months ago, but the subject is sufficiently important to warrant some repetition.

The correction in the gold price continued this week, falling another $40 to a low of $1290 yesterday.

The story that commodities are at the centre of China’s shadow banking system has gained prominence in recent weeks.

Briefly: In our opinion short speculative positions in gold (half), silver (half) and mining stocks (full) are justified from the risk/reward perspective.