. . . Hopefully there were one or two people who followed through on my heads up about silver? Those that did would have been able to get long circa 43.00 and, if they put in a wide stop as recommended and are still holding, will be sitting on a very nice profit. The shiny metal has blasted through 49.00 and will, almost certainly, be above 50.00 by year end.
For those that are applying standard TA to this - or favour a reversion to mean strategy - be
very careful. What we're witnessing is a highly unusual event whereby the price of the commodity has been artificially suppressed by the paper market (futures, ETFs etc.) for decades, as opposed to the usual supply / demand dynamic. That power play is in the process of being reversed, as silver is now a critical commodity (and increasingly a monetary one like gold) used in a lot of tech products - especially solar panels and AI. So, what we're witnessing is a process of rapid price discovery, whereby silver finds its true value. Why? Because instead of those futures contracts being rolled over and bought and sold etc., sovereign states want physical delivery. And guess what, there isn't enough of he metal to meet the demand! Consequently, many analysts believe the price could rise to north of £100 per ounce. Yeah, I hear you - what do analysts know! Even so, almost everyone in the precious metals space believes that price has a lot higher to go before it settles down into 'normal' behaviour that everyone here is accustomed to. There will, of course, but sharp pull backs along the way (as happened last Friday), but please be very wary of shorting the metal, especially if your analysis is simply:
'it's risen too high, too fast: it's bound to fall back to earth soon'. You'll likely get your fingers badly burnt!
😉
