Silver

In this update we have a few links and some charts & comments on global markets as well as precious metals…

Chart 1: Silver finds itself between a downtrend and a strong support…    Source: Bar Chart (edited by Short Side of Long) Precious metals sector outperformed majority of other asset classes in Q1 of 2014, however that strength has recently dissipated. Whats even more interesting is the fact that while Gold and various miners rebounded powerfully in … Continue reading

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

Chart of Silver/S&P 500 dating back to 1900….

Gold kicked off the week at just over $1300 before declining to a low of $1278 yesterday.

Last week we noted that the gold and silver shares had formed a short-term rebound in response to an oversold condition. Yet we felt that the downtrend that originated from the hard reversal in March was still in effect. As we go to publish, the rebound appears to be petering out. Be aware that there … Continue reading

Silver could be starting the final breakdown we discussed in an editorial about a month ago.  Silver broke lower today, hitting the lowest level since February. It is only 6 cents above its December closing low of $19.11. Interestingly, the silver stocks as judged by SIL and SILJ are showing more strength. The bottom two … Continue reading

The boom/bust cycle is caused by fractional reserve banking.

Briefly: In our opinion no speculative positions are justified from the risk/reward perspective.

Gold is now extremely oversold, with emotional opinion in paper markets unanimously bearish.