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Silver price discussion and analysis

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Silver just broke through US$30 and gold broke through US$2,400. I think we will see some pretty frenzied short covering with silver in the coming days. US$30 was a powerful psychological level, and now it's been breached I think a lot of people who were on the fence will go long and the banks that are short will be buying to cover their short positions.

Things should start to get a bit more volatile as the volume heats up.
 

Up over 6%, quite a move. Short covering and FOMO next.

 
Wow! US$31.50. I didn't expect that when I went to bed last night. I imagine we will see a retrace next week but if silver holds above U$30, that level could become the sort of support for silver that US$2,000 was for gold.

The one element that hasn't been taken into account is FOMO, which should come into play soon. The average Mum and Dad are going to start hearing more about gold and silver booming in price from the mainstream media and they are going to start jumping into the precious metals market, afraid that they are missing out on the next big thing.

There looks to be a lot of separate demand elements coming into play in the months ahead. We will see short covering, industrial demand in the form of manufacturers looking to lock in prices as low as they can and public FOMO. This should support the silver price at least in the short term. But I expect we will re-test US$30 next week as profit taking kicks in at the first sign of weakness.
 
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Holding above 30 bucks at the moment and consolidating OK. Pausing around the 32 level to take a breather.

Elliot Wavers must be thinking we're around the top of a W5 and need an ABC, but I rarely see EW called out in advance, only in retrospect.

 
Woot
Get ready for a silver crash as it always does it just before I sell. I just noticed the price and will offload some of my substantial holdings. Only took about 20 years to double.
 
moXJO said:
Woot
Get ready for a silver crash as it always does it just before I sell. I just noticed the price and will offload some of my substantial holdings. Only took about 20 years to double.
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US$30 is still holding and looks like it may be shaping up as a new support level. It did briefly dip below US$30 but I think it just hit some stop loss orders which sent it just below for close to an hour. It then bounced back over US$30 and has stayed above that level since.

If it does seriously break below US$30 then shorters will drive it lower and it will probably go back under US$29.
 
Now I'm feeling greedy. Do I wait for a break higher. World is running away from the dollar. The gold ratio has come back a bit after hitting about 90 down to 75ish. Either Gold drops or silver tracks higher.

Historically $48. 70 but that was a hunt brother intervention. $47.94 was 2011, I'm thinking gold/silver may all drop if Trump is elected though. But we have between now and the election.

There's also the fact we have had a silver deficit for the past 4 years. I suppose we have a lag time around mines catching up as well. Renewables and e-cars are eating up a bit.
But the market is pretty heavily manipulated.

Well I suppose I'll punt a bit longer. Every time I say this it's usually the top though. Silver is my hardest exit.
 
greggles said:
If it does seriously break below US$30 then shorters will drive it lower and it will probably go back under US$29.
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Silver was smashed on Friday after the US Non-Farm Payroll figures were much higher than expected and news that China's Central bank has paused its gold buying turned the precious metals market bearish.

It was the correction silver had to have. This week will be an interesting one. Will gold and silver bounce back or will the price decline further? My gut feeling is we may see silver slip under US$29, but buying support will return once it gets below that level. We also might see some consolidation and sideways trading until the new financial year kicks in, but I don't see silver going below US$28 unless we get some bearish news that rattles the market. I still believe the fundamentals of precious metals are strong and that we are still near the beginning of a lengthy precious metals bull market.
 
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With the USD jumping higher, PMs in AUD might not fall that much...
 
qldfrog said:
With the USD jumping higher, PMs in AUD might not fall that much...
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Traders seeing Friday's precious metals rout as a buying opportunity with gold and silver bouncing back nicely this morning. If all goes well today then we will probably see more of the same on the US market tonight.
 
The silver rally has followed on this afternoon while gold saw selling pressure intensify after the Hong Kong market open as traders continue to exit following news on Friday that China's Central Bank has paused its gold buying. This kind of price divergence between gold and silver is not very common so it will be interesting to see how both metals trade in the US market tonight.

Silver is certainly shining brighter this afternoon.
 
It's been volatile as of lately, especially with the impact of the US Non-Farm Payroll figures and China's Central Bank news. your view on silver's correction and potential price movements is insightful. we are likely to see some further downward pressure near the $29 mark.
 
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