While there is legitimate reason to be skeptical about any of today’s precious metals market data, at least if we accept the numbers as currently presented, it seems as if a run on COMEX gold and silver has already begun.
This was the topic of discussion a few days ago when I was invited onto Jason Burack’s Wall St. For Main St. Program, where we discussed what’s happening now in the silver market, as well as what to expect next.
Silver closed today right on an important KEY LEVEL. For the silver price to continue higher, it needs to break above this level. The last time silver reached this same price was back in early September 2019. And, if silver continues in a positive direction in early Asian trading, we may see a more substantial move higher tomorrow.
There were a few analysts who warned back in 2008 that the Federal Reserve’s policies would lead to the situation that we are now in. Where the Fed is forced to continue printing money, and in reality does not have an exit plan.
Michael Pento of Pento Portfolio Strategies was one of those analysts and in today’s video, he talks about what’s going on in the markets now, how we ended up here, and what he thinks about gold and silver as a solution.
Now that the silver price has broken through the important $18.50 level, will it reach $21 during this current rally? Silver was up 70 cents for the day (Monday). However, after Dallas, Fed President Kaplan announced today that the “Emergency Facilities” used to support the economy might be pulled back, the markets sold off from their highs.
As record-setting demand numbers for silver continue to pour in, the market is being pressured unlike we’ve ever seen before.
Additionally, there are even greater amounts of silver contracts standing for delivery in September, which has historically been a volatile month for the precious metals. And on this week’s physical silver and gold market update with Andy Schectman of Miles Franklin, he discussed what’s happening in the silver market, and whether it might unravel this September.
We talk on the show all the time about how great silver looks from a fundamental perspective. But what are the technical analysts seeing in the silver market?
Fortunately, Chris Vermuelen from TechnicalTraders.com joined me on the show to share what the silver chart looks like from a technical perspective. He talked about some of the key levels to watch out for, and also what he expects to happen when silver breaks through the $20-21 range.
Chris is even one of Eric Sprott’s…
Last week the shocking news was that on the first day of the COMEX July silver delivery period, JPMorgan posted 30 million ounces of silver for delivery. Now, Andrew Maguire of Kinesis Money, who’s been a key witness in the Department of Justice investigation, reports that JP Morgan was told to by the DOJ to reduce its silver position as they negotiate a settlement.
First, let’s look at silver. While silver is still lagging gold, I believe it will start to outperform the yellow metal once it finally BREAKS above the $21 level. The monthly silver price has been stuck below the $18.50 level since 2016. While silver has traded above $18.50, it has not closed above it. We need to see the body of the Monthly Candlestick close above $18.50 for it to be a positive sign for traders. And, with silver closing today at $19.16, we could see a move to $21 rather…