With the 14 day RSI rising above 90 this morning in silver, reflecting the parabolic nature of its recent move, all it took was a slight $ bounce against the euro after the early morning’s weakness to get silver and other commodities to reverse course. In terms of the broader market, silver is a great gauge to watch both in its non $ play, gold friend play of course and industrial use/global growth story but also the momentum game in the short term as markets play a game of chicken with the end of Fed Treasury purchases in two months.

Category: Gold & Precious Metals, MacroNotes

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4 Responses to “Silver”

  1. Greg0658 says:

    “Workers at a northern Idaho silver mine have recovered the body of a miner who was trapped when a tunnel collapsed nine days ago …… had just finished watering down blasted-out rock and ore in the mine when the ceiling collapsed in the 6,150-foot deep tunnel”

  2. socaljoe says:

    A couple things to keep in mind, when it comes to silver:

    Production cost for silver is in the range $5 – 10 / oz.

    Nearly all silver production is byproduct from base metal mining. Strong economic demand for base metals floods the market with silver supply regardless of silver price.

    At this time, most silver demand is “investment demand”. It is important to realize that this “demand” of today can become tomorrow’s supply with a click of the mouse.

    Disclosure: Massively long physical bullion since 2003/2004… selling small quantities over last 6 months… bullish long term.

  3. bocon007 says:

    Cashed in my small silver position this morning for the largest % gain in my personal trading history. Wish I had bought more. Oddly enough, it was the western markets that blinked first. I was expecting the first signs of hesitation in this wild run-up to come from Asia.

  4. blackjaquekerouac says:

    interesting bocon007. “Asia actually has cash” so why would you expect the blow up there? “Western Europe and America only have debt” so “a blow-up in silver makes since” since “the banks need something for all that debt their country/people/dogs have accumulated.” worse still “these Western markets are on year 10 of a mining boom” and “all that silver has been sitting in banks to drive up the price” but “even the banks are having problems with the volume.” of silver of course. so “let’s turn our attention to housing” because “clearly the housing boom justifies the high prices of commodities, too!”