They Continue to Buy Silver Futures
25th March 2018 – By D Mitchell
Commodity markets price discovery generally are driven by yearly supply-demand metrics, above ground stockpiles, cost production numbers, geopolitical events, mine flooding and stoppages, global production peaks etc etc…
This is simply not the case with Silver, the commercial banks have had an overwhelming control on pricing of silver (price discovery) through enormous paper trading on the futures exchanges since the year 2011 they have carried simply colossal short paper silver positions to force lower prices on the market.
Well, that was the case, until now…
I will demonstrate in further charts just how bullish this structure is, see below…
What about the Gold Silver Ratio? What is that telling us? Please see below…
Or a more detailed look of the Gold Silver Ratio…
So in the three yellow boxes above, each time Silver reached this important level of approximately 81 to 1 price ratio of gold to silver.
1st box – Silver rallied near 3 times in value or + 290 %6th June 2003 to 20th April 2006
2nd box – Silver rallied over 3 times in value or + 320 %17th October 2008 to 28th April 2011
3rd box – Silver rallied but only + 32 % on this particular event. 29th February 2016 to 28th July 2016
Silver is the most unloved of all the metals presently, a high degree of cynicism and disinterest is extremely prevalent. However, selling exhaustion in any market is actually an extremely exciting prospective counter investment strategy.
A historical investment opportunity presents itself?
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