• 3 hours Homeowners Experiment With Risky New Investment Trend
  • 6 hours U.S. Tech Stocks Look Increasingly Vulnerable
  • 9 hours De Beers To Expand World’s Most Profitable Diamond Mine
  • 11 hours Ford CEO Gets Raise After Massive Layoff Round
  • 1 day Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 1 day Where To Look As Gold Miners Inch Higher
  • 2 days Google Faces Billions In Fines From European Regulators
  • 2 days The Energy Industry Has A Millennial Problem
  • 3 days Russian Banks Scramble For Sanction Loopholes
  • 3 days Gold ETFs Take A Hit After Four-Month Run
  • 4 days European Union Takes Aim At Ten New Tax Havens
  • 4 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
  • 4 days $600 Billion At Risk As Boeing Fallout Continues
  • 4 days Venezuela Has Yet Another Crisis Developing
  • 5 days Wells Fargo Accused Of “Ongoing Lawlessness”
  • 5 days Hollywood Agency Returns $400M Investment To Saudi Wealth Fund
  • 5 days Why Twitter's CEO Is Backing A New Bitcoin Boom
  • 5 days U.S. Treasury To Employ “Extraordinary Measures” To Fend Off Default
  • 6 days Lobster, Golf Carts And Fidget Spinners: What’s In The Federal Budget?
  • 6 days Italy Launches New Welfare Experiment
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

  1. Home
  2. Markets
  3. Other

Silver at The Mercy of China's Stock Market

Silver's fate will be determined over the next few weeks by the events unfolding around China's stock market.

If their equity markets stabilize, and if it looks as if the worst is over, silver will stabilize as well. If not, then neither will silver.

The reason is simple - the further the stock market of China falls, the more concerns will grow about slowing global growth overall, but especially growth in China, which is the world's largest consumers of most raw materials and many commodities. Poor demand never bodes well for commodities, and silver is no exception.

Silver Daily Chart Chart
Larger Image

Right now, silver is currently traveling in a DOWNWARD SLOPING PRICE CHANNEL.

The top of this channel happens to correspond closely with the band of horizontal support near 15.40-15.50. Before silver has any chance of doing anything to the upside, it will need to push through the top of the channel and this horizontal level and CLOSE ABOVE it.

Silver Daily Chart Chart
Larger Image

If the bounce remains weak, as is currently the case, the metal could easily clip the top of the descending upper channel line before resuming another push lower to below $14.50 and possibly even $14.25.

I have said it many times, silver MUST HAVE AN INFLATIONARY ENVIRONMENT in which to thrive. It will not perform well in any sort of environment in which SLOW GROWTH concerns (deflation) dominate. And, it has NOTHING to do with some cockamamie "the price is only lower because it is manipulated by evil bullion banks" crap.

I suppose those same "evil, bullion banks" have also been pushing copper and platinum and palladium and crude oil and gasoline and heating oil and coffee, lower as well. Yes indeed, those bullion banks are certainly busy little bees manipulating the entire commodity complex lower now are they not?

And to think that some poor deluded souls actually pay people to regurgitate that sort of nonsense into their eyes and ears...

 

Back to homepage

Leave a comment

Leave a comment