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Silver Shouldn’t Be Forgotten Either
Silver shouldn’t be forgotten either. After all, we have seen silver take off to the upside during the entirety of Q1, and it is now at the time of writing, threatening a break above the crucial $35 level. This gets my attention because this is an area that once broken, quite often it has since silver looking to the $50 level. This has only happened a couple of times in the past, and both times silver ended up being like a rocket ship to the upside.
There’s an old legend, possibly driven by CFTC legal actions against J.P. Morgan, that there is a ton of selling pressure in this area and the reason silver has rocketed like that a couple of times in the past is because it ends up causing a short squeeze. While that may or may not be true, the one thing that I do know is that silver is very strong, and a move above the $35 level would probably not only see silver go higher, but it would probably drag gold right along with it, or vice versa.
Pullbacks at this point in time should be thought of as buying opportunities and I would not start worrying about the uptrend in silver until we are well below the $31 level, something that would take a catastrophic episode of negativity. The only thing that I can think that could do that is if the US dollar suddenly spikes quite radically. Remember, and perhaps more so than gold, the US dollar can put a real beating on the silver market.
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