Saturday, October 15, 2011

Silver on the Verge of Another Breakout [By: CHRIS MARCHESE OCT/14/2011]

Silver appears extremely bullish from a structural point of view, something that myself and others have been talking about the last 12-14 months. We first saw this in the vast reduction in the adjusted open interest (reference to spread positions) by about half followed by 2 monster rallies beginning in Sept 2010 and again in February 2011. From personal experience, gauging physical investment demand, paper (ETF) demand, shape of the futures curve and the Commitment of Traders report, silver will likely see a monster rally to at least the $40-$43 area before year end and possibly a breakout pushing the $50 level. In any case, Silver would be the one commodity I would want to own for the next 12-24 months.


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