by Adam Hamilton
Zeal LLC
Silver is blasting higher after mid-March’s stock-panic-spawned near-crash. This normal oversold mean reversion looks like the start of something much bigger though. Speculators’ positioning in silver futures utterly collapsed, leaving massive room for them to buy back in. And silver investment buying since the recent lows has been strong and relentless. All this argues that a big new silver bull market is starting to run!
Since silver prices are usually slaved to gold’s, I don’t write silver essays often. Silver usually follows and amplifies whatever is going on in gold, which is its dominant primary driver. So gold analysis by extension normally applies to silver, which effectively acts like a gold-sentiment gauge. But the setup in silver today is unique and extraordinarily-bullish, leaving it with much-greater upside potential than the yellow metal.