• 15 mins Tesla Slashes Prices Again
  • 2 hours The Modern History Of Financial Entropy
  • 18 hours Italy’s Central Bank Embraces Sustainable Investing
  • 21 hours Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 1 day Researchers Push To Limit Space Mining
  • 1 day Could China Start Dumping U.S. Treasury Bonds?
  • 2 days Is Winter Coming For HBO?
  • 2 days Rise Of EVs Signals Peak Gasoline
  • 3 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 3 days Gold Mining Stocks Stuck In Limbo
  • 4 days Executive Order Targets Huawei Over Espionage
  • 4 days Why Now May Be The Best Time Ever To Hold Gold
  • 5 days Fake News Sinks Shares In UK-Based Bank
  • 5 days De Beers To Build $468 Million Diamond Recovery Ship
  • 5 days Moody's: Turkey Faces Possible Credit Downgrade
  • 5 days Tesla's Solar Sales Are Slipping
  • 6 days Auto Industry To Get Temporary Tariff Relief
  • 6 days Welcome To The World’s Biggest Free Trade Area
  • 6 days Central Banks Are Stockpiling Gold At The Fastest Rate In Half A Decade
  • 6 days U.S.-China Impasse Threatens Rare Earth Trade
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Dan Norcini

Dan Norcini

Dan Norcini is a professional off-the-floor commodities trader bringing more than 25 years experience in the markets to provide a trader's insight and commentary on…

Contact Author

  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