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An 18-Year Extreme For Silver

Cory
September 28, 2018

We are further seeing extremes in the silver market. As the charts below point out silver hedgers are betting bullishly on silver and the stocks could follow.

The charts are courtesy Chris Kimble at Kimble Charting Solutions. Click here to visit Chris’s site.

Silver breaks out, haven’t seen this in a while!

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This chart from Sentimentrader.com looks at the positions by Silver hedgers. At this time a very crowded trade is in play, an 18-year extreme. If history is a guide, Silver is currently closer to a short-term low than a high.

Silver, Gold and Mining stocks have not had much fun this year, as all have declined a large percentage. The declines in Silver and the SLV/GLD ratio have created potentially bullish falling wedge patterns over the past few months.

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This week SLV and SLV/GLD are working on short-term breakouts, while momentum is deeply oversold.

Sure haven’t seen this price action in a while! Hi-Yo Silver Time? Sure could be!

If you are interested in taking advantage of the opportunities in Gold, Silver and Minning stocksat this time, give our Metals report a try!

Discussion
17 Comments
    Sep 28, 2018 28:22 PM

    Silver needs more of the same action on Monday…
    http://schrts.co/YrDBdA

    Sep 28, 2018 28:27 PM

    It’s been a long time since silver:gold looked this good:
    http://schrts.co/jnjiqX

    Sep 28, 2018 28:00 PM

    For stockcharts subscribers, here’s a monthly look at IPT:
    http://schrts.co/1j4vEv

      Sep 29, 2018 29:08 AM

      Thanks for the charts Matthew. I have watch IPT and USAS closely. The PM markets are changing but it’s a very slow process. Yesterday was a good day to end the quarter, but might be just that. Some part of me thinks there might be more weakness to start the new quarter. Just doing a lot of watching these days. I started a new job this past Monday so my posting time will likely tak a bit.

        Sep 29, 2018 29:49 AM

        It really has turned into a strange market but I can’t help but be optimistic when I look at the picture in it’s entirety. The general bearishness and my own emotional uncertainty adds to my intellectual/objective certainty. BUT, I am still not certain about the short term.

        Good luck with your new job. Such change usually comes with some stress!

      Sep 28, 2018 28:43 PM

      Will,,, Jrs. and Explorers suffer……..?

        Sep 29, 2018 29:53 AM

        Yeah OOTB – I saw a different source reporting about Bank of America removing the ability to trade stocks under $5 and did consider how this may affect the Jr miners and Explorers if it becomes a policy more banks adopt. They basically will push those investors onto other platforms to trade them, but it may affect the larger institutional money flows, which wouldn’t be a positive development.

          Sep 29, 2018 29:10 AM

          Might have to play the HUI…………

    Sep 28, 2018 28:47 PM

    silver gold ratio……………81 to l………..still needs a lot of work……..

      Sep 28, 2018 28:48 PM

      Bob Hoye…….was call for 100 to 1……..guess he is not going to make it…………lol

      Sep 28, 2018 28:13 PM

      Agreed, it has been playing good catchup this week but plenty still to do. A ratio of 70-75:1 before the years out would bode well for all PMs I believe.

        Sep 29, 2018 29:09 AM

        I agree , in a couple of years……I would like to see it at 35 to 1……..but, that is going to take a lot of work, ….maybe after the 2020 election……….

    Sep 28, 2018 28:59 PM

    Flake is welcome to come to HHI and play the red wave. The homeboyz will play any red wave he wants.

    Sep 29, 2018 29:50 AM

    a contributor over at ceo.ca posted this recently, and I almost just skimmed right past it, because I’m not a big fan of endless discussions on “manipulation” and thought it was the typical type of whiny finger-pointing editorials about the cabal at first glance. This was a bit different though and focuses on number of exchanges where trading volume is pulling from that are not visible to most retail investors.

    It was surprising to me how many different exchanges were trading some stocks or ETFs in parallel to the TSX and TSX-V, making the bid/ask & Level 2 quotes on most platforms not entirely accurate or transparent for the average retail trader. Interesting.

    ___________________________________________________________________________

    Canada’s Stock Market Manipulation and Transparency Issues
    Equedia May 21, 2017

    “…There are now many alternative market centers that process trades for stocks listed on the TSX and TSX Venture. Some of these include Alpha Trading Systems, Chi-X Canada, Pure Trading, Omega ATS, and dark pool Match Now.”

    According to Stockwatch:

    “Alternative trading systems in Canada handled 33.7 per cent of trading volume during the week ended May 3, 2013.”

    “…The Toronto Stock Exchange and the TSX Venture Exchange handled the other 66.3 per cent.”

    “…Looking at securities listed only on the TSX, the exchange captured 61.2 per cent of volume. Chi-X handled 18.3 per cent, Alpha had 11.7 per cent and together the other ATSs handled the rest, 8.8 per cent.”

    “As you can see, these alternative trading systems handle a large portion of the trading volume in Canada, yet most regular Canadian investors don’t see this because most quote systems do not include transactions from all the different platforms.”

    “Furthermore, while volume of trade can be seen by the select few quote platforms that incorporate the volume between these exchanges, (few) of them combine them in the same bid/ask level II depth because they are being traded on different platforms via parallel order books.”

    “In other words, while you may be trading a stock on one platform, that same stock is being traded on different platforms at the exact same time.”

    “This not only removes transparency – especially for the average retail investor – but it also removes visible liquidity for any particular stock.”

    The retail investor using his/her online trading quote system doesn’t stand a chance – especially when playing on an exchange with little volume, such as the TSX Venture.”

    “If you think things have gotten better, think again.”

    “Today, there are now 13 trading platforms facilitating the sale of securities in Canada.”

    “And a whopping 41% of the volume traded in Canadian securities originated from platforms outside of the TSX and the TSX Venture:”

    “When it comes to ETF’s, the visibility is even more opaque.”

    According to Invesco:

    “…in 2016, the TSX represented only approximately 39% of total ETF trading volume, with the remaining 61% taking place on alternative venues…”

    http://www.equedia.com/canada-stock-market-manipulation-transparency-issues/

    Sep 29, 2018 29:02 AM

    Precious Metals Summit 2018: Portfolio Managers Weigh-in On the Future Of Gold
    Richard Quarisa – September 27, 2018 – The Northern Miner

    “More than 150 precious metals companies attended this year’s Precious Metals Summit, with a generally positive sentiment about the future of gold and silver, despite low spot prices of US$1,200.90 per oz. gold and US$14.50 per oz. silver.”

    “Our expectation is that in 2019 we’re going to see a much more constructive gold market,” Tocqueville Asset Management portfolio manager Doug Groh tells The Northern Miner from a conference room at the Summit.

    “In particular we found that gold is a good non-correlated asset to an overall portfolio,” Groh says. “When other investments may be doing well, gold may not be doing well, but when investments other than gold are doing poorly, gold often does quite well to offset that poor performance from other sectors.”

    “For Dynamic Fund’s vice president and portfolio manager Robert Cohen, those catalysts are emerging right now in the form of U.S. president Donald Trump’s trade wars.”

    “What we can expect in the next couple of years is for Donald Trump’s trade wars to morph into currency wars, and that’s when gold will really start to be rocket-fuelled,” he says.

    “So in this, call it the first inning, don’t expect much — but in the next inning we’ll see a lot of action in the gold price.”

    He expects to see a bit of a global currency war coming in the next couple of years and, along with it, headline inflation increases. Cohen adds that if the trade wars manifest in higher U.S. consumer prices, “people will start realizing that a dollar’s not a dollar anymore, and they’ll wake up to that and start looking for alternatives like gold to protect their purchasing power.”

    http://www.northernminer.com/news/precious-metals-summit-2018-portfolio-managers-weigh-in-on-the-future-of-gold/1003799850/

    Sep 29, 2018 29:01 AM

    Doc, with a possible breakout of silver, are you buying EXN again. Is Impact Silver (IPT) on your radar at all.