SILVER MARKET: Indicators Setting Up For A Big Move

If we look at certain indicators in the silver market, the price is setting up for a big move.  It seems as if mainstream investors are now becoming more worried about the stock and bond markets.  With almost $17 trillion in negative-yielding debt in the world, the notion that gold or silver doesn’t earn a yield is starting to look like a better deal than paying someone to own bonds.

Thus, the record increase in negative-yielding debt has push gold, in just the past few months, has been one of the catalysts to push gold above an important six-year resistance level.  Furthermore, several articles have stated that gold has reached an all-time high in 73 currencies.  However, it will take some time for gold to reach a new high in the U.S. Dollar because the Fed has a monopoly on the world’s printing press.

Now, for silver. While silver hasn’t been in the spotlight like gold, it has actually outperformed the yellow metal over the past three months.  Since June, gold peaked at being 18% higher while silver was 20%. But, certain indicators for silver are showing that we may be setting up for an even BIGGER MOVE.

In my newest video, SILVER MARKET:  Indicators Setting Up For A Big Move, I explain this in detail with ten charts:

One of the important charts in the video shows how the volume on the SLV ETF has increased significantly and is the highest its been since 2012. Typically, when we see a significant increase in trading volume in a stock or commodity, traders and investors are setting the stage for a larger price move ahead:

Part of the reason for the increased volume in the SLV ETF, has to do with it finally breaking above the 50 Month Moving Average (Blue Line).  The silver price and SLV ETF have been trading below the 50 Month Moving Average (MMA) since 2013.  So, a close above this 50 MMA at the end of August would be an excellent sign for traders and investors.

Now, I published the video late on Sunday evening because of positive setup on the Silver Daily chart.  I saw a small Ascending Triangle form in the silver price over the past two weeks, and if it broke above that $17.25 level this week, we could easily see another $1.00+ move.  However, with the announcement by the German Govt of stimulus plan as well as China’s interest rate reform (published on Zerohedge), the precious metals sold off in late Asian and early European trading.

In my previous video, GOLD & SILVER:  Continued Breakout Or Correction, I did say that I thought the precious metals would more than likely experience a correction before moving higher.  While the short-term Silver Ascending Triangle did not result in a move higher today or this week, nothing goes up in a straight line.

However, even if we don’t see a continued breakout in the silver price this week or next, the medium to longer-term fundamentals and technicals still point to much higher prices over the next 1-2 years. Furthermore, the Silver COT report that came out on Friday reported that the Commercials liquidated 10,000 short positions, even though the silver price increased 50+ cents:

So, the idea that the Commercials will continue to add more shorts as the silver price increases, doesn’t seem to be taking place over the past two weeks. Instead, we see a “consolidation” of Commercial Net short positions to a lower level as the silver price increases.

Lastly, over the weekend, I did an interview with Louis at Smaulgld.com on the silver market.  Even though I explained some of the indicators with Louis, I wanted to do a more detailed video.  But, Louis adds some interesting information about the tremendous amount of silver moving into the SLV ETF as well as other global silver ETFs.  Here is our interview below:

Precious metals investors shouldn’t be concerned with seeing a correction in the gold and silver prices. As I stated, gold could go back down to $1,360 and silver $15.50 before resuming their bullish trend at the end of the summer or beginning of the fall.  Of course, they don’t have to correct all the way down to those levels, but we shouldn’t be surprised if they do.

I will continue to put updates on the Gold and Silver prices, but I plan to put out a very interesting video on the Fundaments in the Silver Market next week that is quite interesting.

If you are new to the SRSrocco Report, please consider subscribing to my:  SRSrocco Report Youtube Channel.

HOW TO SUPPORT THE SRSROCCO REPORT SITE:

I would also like to thank those foundation supporters, who have chosen to become a member by making donations through PayPal to further the research and publishing work at the SRSrocco Report.

So please consider supporting my work on Patron by clicking the image below:

Or you can go to my new Membership page by clicking the image below:

Check back for new articles and updates at the SRSrocco Report.  You can also follow us on Twitter, Facebook, and Youtube below:

Enter your email address to receive updates each time we publish new content.

I hope that you find SRSroccoReport.com useful. Please, consider contributing to help the site remain public. All donations are processed 100% securely by PayPal. Thank you, Steve

newest oldest most voted
Notify of
OutLookingIn
Guest
OutLookingIn

Adding shorts “doesn’t seem to be taking place”. I think you could be mistaken there Steve. Silver’s overall open interest is now at (closing Friday) 227,363 down 1,992 short contracts. Taken from that, you may argue your summation is right. But looking at the action on the market today, with the price of silver getting whacked, now at $16.83 closing, it looks like the silver shorts overnight piled back into the market at the London opening, forcing the price lower. Tomorrows comex report will tell the tail. An interesting aside (from J. Johnson) is that the comex “HAS NOT DELIVERED”… Read more »

4 oz
Guest
4 oz

Silver is still very cheap. Has been for years. No secret there. Some of us who are long in the tooth today were noobs in 2011 & have a very long way to go to even get back to our DCA. None of that matters, really, because buying all the way down from those big buys entering the Physical Silver market in the early spring of 2011 hasn’t sucked. Ounces do add up. Have said for years that I know people will pay $52 for American Silver Eagles because I’ve done it. And was excited to do it. The real… Read more »

Crayfish
Guest
Crayfish

Like you, I was a noob in 2011…and have bought all the way down. Still have a long way to go to get back to even. The real bite is that silver was about $50 in 1980….let that sink in a while…and then say it again. Silver was about $50.00 in 1980. This manipulation has been going on for a lot longer than 2011. It took 31 years to get back to about $50.00 and NOW we are back at $17.00. Are you really that confident that silver (given its history) will get back to $50.00 in a short period… Read more »

james r
Guest
james r

There is no “hope” for a financial collapse. It will happen. Have you not been reading Steve’s articles or are you knew here?

Crayfish
Guest
Crayfish

LOL….been around lot longer than you my friend. Articles don’t mean it “will happen” and certainly not in any given period of time. Articles about the future price of anything, especially silver and gold, is mere speculation and opinion. Many of the talking heads (Eric Sprott, Jim Grant, Michael Pento, Bill Murphy, Jim Sinclair, Rob Kirby, Bill Holter…(and many others) have been downplaying the stock market and talking up the metals and a financial collapse since 2011. They based their calls on charts and fundamentals. Not that they have been wrong with their beliefs or data…but certainly wrong with their… Read more »

james r
Guest
james r

I did not mention anything about price. If you had looked at the evidence present in the past articles a financial collapse is inevitable. The only speculation is the time and price of metals when the collapse reaches its peak.

We are here to prepare what is to come.

james r
Guest
james r

“new”

4 oz
Guest
4 oz

@ Crayfish Last thing I want is a financial crash; Fighting for survival has zero appeal to me. I’m way too old for that kind of drama. Those that say Silver spiking n 1980 and in 2011was a fluke can make a very good case. However history does clearly indicate that “The Red Coats” took full advantage of the war torn nation and instigated what was called the Crime of 1873 getting President Grant to unwittingly demonetize Silver. Mindful that these were/are the very same English Bankers that Washington and Franklin fought against AND who we wrestle with today. The… Read more »

OutLookingIn
Guest
OutLookingIn

4oz LBJ and “silver taken out of coinage”. Exactly. Remember, at the time JFK was in a fight with the Fed to take over issuance of the nations currency. By having the Treasury issue US dollars based on silver. As a matter of record, the Treasury had a hoard of newly printed dollars ready to be issued at the time John Kennedy visited Dallas Texas. One of the first things LBJ ordered after the murder of JFK, was the destruction of these new dollars and as you say the next year, told the nation there was no need to hoard… Read more »

Brant Lee
Guest
Brant Lee

It’s interesting that by the late 1960s, there would be barely enough total silver mined to cover yearly US coinage.

OutLookingIn
Guest
OutLookingIn

@ Brant Lee

HR 5389 Passed by Congress June 04, 1963
Elimination of silver backing from the US paper currency, thus freeing-up $2 billion of Treasury silver bullion for coinage.
The Coinage Act of 1965
Enacted July 23, 1965 provided for the elimination of silver in circulating U.S. coinage.
All use of silver (40% half dollar) in US coinage was subsequently eliminated by a 1970 law.

Anjin-san
Guest
Anjin-san

Superv surmised Steve.(6.44seconds)
https://www.youtube.com/watch?v=d9dEyhLNfoA
Abrupt and irreversible climate change is not a
survivable event,unless you’re a microbe living
seven miles underneath the surface of the planet.