"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 8 hours Gold: The Religion Of Currency
  • 2 days Economists Polarized On Trump’s Tariff Plan
  • 2 days Why Are Investors Overlooking Gold Stocks?
  • 2 days The App That Democratized Trading Is Now Worth $5B
  • 2 days Super-Cycles: Why Gold Is Set For A Breakout
  • 2 days U.S. Sanctions Russia For Election Meddling And Cyberattacks
  • 3 days Snap Shares Tank Over ‘Slap Rihanna’ Campaign
  • 3 days How Low Can Bitcoin Go?
  • 3 days Amazon’s Japan HQ Raided In Anti-Monopoly Push
  • 3 days Is Barrick Gold Close To Finding A Bottom?
  • 3 days Morgan Stanley’s Top 10 Short-Term Stock Picks
  • 3 days China: The Land Of The Ultra-Rich
  • 3 days Alibaba Soars On Reports Of China Listing
  • 3 days What Killed Toys ‘R’ Us?
  • 4 days SEC And IRS Take An Aggressive Stance On Cryptocurrencies
  • 4 days Bears And Bulls Face Off In Gold Markets
  • 4 days Bitcoin Is Winning Over The Housing Market
  • 4 days Markets Slide Sideways As Trade War Fears Linger
  • 4 days Why Aren’t Millennials Investing?
  • 4 days Bitcoin And Banking: The Next Mobile Payment Revolution
Is Barrick Gold Close To Finding A Bottom?

Is Barrick Gold Close To Finding A Bottom?

Barrick gold has been a…

Snap Shares Tank Over ‘Slap Rihanna’ Campaign

Snap Shares Tank Over ‘Slap Rihanna’ Campaign

Snapchat’s share prices tumbled after…

Clive Maund

Clive Maund

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports.

More Info

Silver Market Update

Originally published September 18th, 2011.

Silver has fallen back over the past week as expected, and although its uptrend from late June has now failed, which is viewed as significant, it managed to hold up above nearby support which may generate a bounce early next week. However, this should not be a cause for celebration by silver longs, as overall the picture for silver continues to look precarious in the extreme. We can see why on the year-to-date chart below, which shows that silver appears to be completing the B-wave of a large 3-wave A-B-C decline, the 3rd wave of which, believed to be imminent, is likely to be really severe and will devastate silver longs.

Silver - Year to Date

On its 6-year chart silver looks like it is completing a classic large top formation. First it rose vertically to hit its most overbought levels late in April since the good old days of the Hunt brothers back in 1980. Then a panic selloff hit, triggered ostensibly by hiked margin requirements (of course, its being insanely overbought had nothing to do with it), all of which was accompanied by the huge volume characteristic of a top. Lastly, the johnny-come-latelies are corralled into silver by proliferating cheerleaders to drive the weak rally back towards the highs that we have seen over the past couple of months. There is just one instalment left to go, the drop down to the support shown at the lower boundary of the top area, the failure of that support, and the final devastating plunge that leaves hordes of silver speculators hung up in the large top area and smarting from massive losses. clivemaund.com subscribers are prepared for this with our Complete Toolbox for Capitalizing on a Gold & Silver Plunge.

Silver 6-Year Chart

The likely reason for a severe decline in silver, and in commodities generally, and a heavy correction in gold, which is another deflationary downwave that has been signaled by the dollar breakout, is discussed in more detail in the Gold Market update.

The latest silver COT, shown below, looks quite bearish with a quite high Commercial short and Small Spec long position. In comparison, the gold COT looks considerably more positive.

Silver COT


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter