Its long time since I wrote on the $SI_F silver market. Some months back I happened to notice the price action for the Silver and commented on my Twitter blog @wizajitmc that the metals are poised for southward journey now back to the $26-27 levels, when Silver was ranging from $34-$35.
That was not just a comment, more-so it was by accident that I noticed such a price action in Silver, thanks to my father who asked me to look where it may possibly drive. He looked surprised at my estimate, just like some of my trading friends and professional colleagues whom I met at the Gold and Silver precious metals summit organised by the Dubai Gold & Commodities Exchange (DGCX) in January, early this year. It was hard for them to believe that Silver and Gold could well travel the south in the coming months, given the fact that the Euro zone was in deep wreck with Greece and Spain suffering from the suspense of getting bailout or not, and whether Euro would breakdown or not. They were opinionated that metal prices were bound to rise, and they were not the only people thinking that.
Many analysts would believe metal prices to soar to the upside during such crucial times when the economy of certain territory is on the verge of the meltdown, which by the fact seems to be very much correct. Nevertheless, Silver and Gold and other metal prices have restrained from moving to the northern hemisphere of the graph.
Levels such as $49.80 in Silver and $1921 in Gold are still standing conspicuous. Many investors who invested in the bull run of the last year, are starting to lose hope of a possible recovery to these levels.
Many may argue, that commodities are bound to start a new bull run and breach the existing highs and set new record highs, but there is very little chance for that to happen this year. Given the fact that world’s greatest economies such as the USD and Euro are showing signs of ageing and deterioration in their “intrinsic value” as I would define, things are beginning to look awry.
This is it for now. Stay tuned for the next update soon.