Commodity Trade Mantra

Posts Tagged ‘SLV iShares Silver Trust’

Silver Bull Alive & Well Despite Recent Correction-Weakened Sentiment

Silver has spent most of the third quarter drifting sideways to lower. This has naturally weighed on sentiment, with investors & speculators alike growing more bearish during recent months. Yet silver remains way undervalued relative to its primary driver gold, so the young silver bull market is far from over. Silver’s upside from here is still massive as it mean reverts higher with gold.

Young Silver Bull Faces Silver Futures Driven Correction

Silver futures speculators have ramped their silver longs to extreme record levels. This has left silver very overbought, at risk of a considerable near-term selloff once something inevitably spooks the hyper-leveraged futures speculators into unwinding their excessive longs. But far from being threats, mid-bull corrections are offer investors the best buying opportunities within ongoing bull markets.

Silver Prices Remain Deeply Undervalued - But Not For Long

The bottom line is silver prices are deeply undervalued today relative to prevailing gold prices. Even if the silver/gold ratio merely returned to normal-year average levels, and gold stopped rallying, the coming gains in silver prices will be big. That gold itself is mean reverting higher now, holds great potential for silver prices to literally multiply.

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