Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Silver Prices
Silver Price
[Most Recent Quotes from] Our RSS Feed

Silver Updates by Mail

Enter your email address:

Follow Us on Twitter
« Bounce in Gold Is a Dead Cat – Fade The Rally | Main | FIRST MAJESTIC SILVER CORP: Payment of CDN$14.85 million Received in Court Litigation »

Silver… Light at the End of the Tunnel?

David Franklin and David Baker

Silver’s year-to-date performance has been the worst among all commodities, falling 35% from January to June 30th this year. It’s been a rough ride for those who have held on, but recent news should give silver investors a reason for some renewed optimism.

The news relates to recent filings that have revealed a dramatic change in the positioning in the silver futures market and ownership of the iShares Silver Trust (SLV).

In the COMEX futures exchange, the “Commercials” category of traders, made up of large banks, has traditionally held significantly large “short” positions – which means that the banks are either hedging an existing silver position or betting that silver will depreciate. The recent COMEX disclosures have revealed a staggering drop in the “Commercials” outstanding short positions, however – representing a decrease from 259 million ounces in February 2013 to 20 million ounces as of the last Commitment of Traders (“COT”) report released June 25th.1  This represents a significant change in the positioning of the silver futures market, and also suggests that previously ‘short’ participants have exited the “short silver” trade altogether. This drop actually represents the cumulative purchase of approximately 240 million ounces of ‘long’ silver contracts to cover the previously mentioned short positions, so despite silver’s price decline, the silver futures market has actually seen an abundance of buying.

To raed this article in full please click here

With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.

Great care will be needed in the selection process in order to generate a reasonable profit and that’s where our new venture begins. ‘Stock Trader’ has begun trading on behalf of ourselves and our much valued subscribers, all exciting stuff which we are really looking forward to, if you wish to join us then please subscribe below;

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

Don’t forget if you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that your verification has not gone astray and you are getting our emails.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>