CAD
USD
  • FREE Shipping & Insurance on Orders Over $500
    FREE Shipping & Insurance on Orders Over $500
back to top
News

Are You Ready For The Next Rally In Silver? - Craig Hemeke (13/03/2018)

Three silver bars sitting in a shape of T

March 13, 2018

COMEX silver prices are largely unchanged year-to-date, despite a falling U.S. dollar and historically bullish CoT structure. So today we ask, are you ready for the next rally?

If the title of this post sounds familiar, it should. We posed a similar question regarding gold back in December, and you can review those posts here:

https://www.sprottmoney.com/Blog/another-tradable-...

https://www.sprottmoney.com/Blog/are-you-ready-for...

Those forecasts of an early 2018 rally in gold prices turned out quite well, as COMEX gold bottomed near $1,240 on December 12 and then rallied to $1,365 on January 25. That's almost exactly 10% in about six weeks.

Well, here we are in March of 2018, and it appears that the next COMEX metal to rally will be silver. We wrote about the basis of this idea last week. Here's the link if you missed it: https://www.sprottmoney.com/Blog/the-comex-silver-...

In short, the three primary drivers of this rally will be continuing weakness in the U.S. dollar, generally rising commodity prices and the aforementioned Commitment of Traders structure that recently showed the Large Speculators in COMEX silver to be NET short for the first time in nearly 15 years.

As you know by now, the COMEX silver "market" is very likely THE most manipulated in the world, given its relatively small size and the dominant, monopolistic positions held by a few major banks. See below:

 

 

Thus, one can logically deduce that a market structure of hedge funds and managed money accounts moving NET short, while The Banks move toward NET long, is a pretty reliable indicator that a rally is coming. The four most recent periods of a similar CoT structure are summarized below:

 

 

What will be your cue that this rally in COMEX silver is underway? Watch the direction of price as it interacts with the 50-day and 200-day moving averages. Both are found near the key resistance level of $17. Thus, any move up and through $17 will set off a chain reaction of Large Speculator short-covering and long-buying. This huge amount of NET long addition will be what drives price back toward the January highs and beyond.

 

 

In December, we forecast the most recent rally in COMEX gold and asked if you were prepared to take advantage. We ask the same question today in COMEX silver. Are you prepared for the next rally in COMEX silver? If not, perhaps today would be an excellent time to add to your stack.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More
about-sprott-skyline
Head shot of Craig Hemke

About the Author

Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities.

Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

no_comments

Looks like there are no comments yet.