Yahoo Finance reports that the price of silver is highly
dependent on big banks which form the majority on the short side at COMEX.
Many ask themselves whether the price
of SLV may go beyond $50 this year or at least
hit the floor at $50. Well, many factors must be considered before drawing a
conclusion.
Concentration is the most important
factor since hedging on short positions influences prices significantly. When
concentration is determined without removing the swaps, the current level of
short market concentration purely eclipses the amount and price of silver that
Hunt brothers held for several years before being persecuted for it.
The price of silver has broken
above its 200 day moving average today. It is now trading just below the normal
100 day moving average with any break above 100 receiving consideration as being
a bullish technical signal.
Thus it is becoming clear that SLV has
been undervalued for decades now. No wonder it has managed to retreat its price
since June last year.
Check Silverseek to find out whether it will
regain its high of $49.77 as of April 2011 or it will continuously decline in
these economic unpromising times.
Click here for more information about SLV!
Click here for more information about GLD!
