Tag: silver bugs

Can The Silver Bugs Alter The Macro?

Posted on by Gary Tanashian

As to the post’s title, they sure are trying. Despite doubts that the stodgy old likes of me may have.

Silver

But for two days at least dem bugz is successfully battlin’ dem boyz on da COMEX. The result is that the Silver/Gold ratio (weekly futures chart) has been rammed to a new high for the post-crash move. If we back completely away from the #silversqueeze punchbowl, this is an indicator guiding the way for forward inflation.

silver gold ratio

So again, can the silver bugs alter the macro? Are the silver bugs altering the macro or is silver just doing what it has been technically capable of doing all along? Since well before #silversqueeze (a ‘me too!’ operation to the famous Reddit plays of late) was promoted by its originator, gold had been trending down vs. silver. Continue reading "Can The Silver Bugs Alter The Macro?" →

This Shiny Metal Could Be In Bargain Territory For Value Investors

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Stocks are trading close to all-time highs and valuations are well above average with a P/E of 19.72 compared to the historic median of 14.57. At first glance, it might seem as if there's no value to be had in this market, but when one asset class thrives, it generally means another is struggling.

Right now, commodities are the unloved asset class by investors. A strong U.S. dollar and booming stock market have driven prices lower as demand favors equities. However, the tide could be on the verge of turning, putting one precious metal in a position to flourish.

A bright outlook for silver prices

For contrarian investors, silver looks like a bargain right now. This chart shows silvers prices at 5-year lows – a good sign for those looking for value opportunities.

Silver Spot Price 2010-2015
Chart courtesy of StockCharts.com

Now take a look at the signals silver is giving investors right now. It's trading below it's 200-day moving average of $17.91 which is a sign that's it's being undervalued. What's more important though is what the Bollinger Band Width is saying. It tracks volatility and identifies when a potential squeeze might occur. Hovering at around 10, less than its 200-day moving average, it could be a signal that silver is getting ready to rally to the upside. Continue reading "This Shiny Metal Could Be In Bargain Territory For Value Investors" →