The Excellence of SLV During Times of Broken Promises

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.

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