Tuesday, 13 August 2013

Silver up over 12% in 3 days! What's happening?

My friend who's one of the economists at Saxo Bank pointed this article they made: http://www.tradingfloor.com/posts/silver-11-percent-week-s-going-1073612091

And it's spot on. However there's other factors at play here. It's also due to extreme lack of liquidity which has made it very easy for the Banks/firms to do stop runs as there were a LOT of stop losses just above the local resistance of $20.50. So once all of those stops (including mine!) were hit, that massive amount of short orders closing = net long. Also combined with the fact that JPM are winding down their commodity prop office, there's not so much overt naked shorting going on at the moment
. However despite price action blasting through resistance, I still think Gold and Silver have more falling...but don't get me wrong, I'm still expecting Gold and Silver to at the very least rise by 500% within the next 1-5 years and Silver going to parity with Gold within the decade...