Is Silver Volatility Creating Opportunity?

Mike Maroney: Good afternoon! It’s Wednesday, October 31st. My name is Mike Maroney and I’m coming to you today from the Monex Precious Metals Studio. Today, we’re going to talk about silver in our Silver Centric video series.

Last week, silver banged up against key resistance, right at that $14.85, $14.90 area. Interestingly enough, for you technical traders, you would have seen a potential inverse head and shoulder bottom forming and if silver had broken through $14.90, we could have seen a tremendous rally to the upside. Now, interestingly enough, many traders took profits in that area that bought it much lower with the idea that… one, they would buy it back on a dip or two, they could buy the break out if it did achieve the break out above $14.90. Why I’m talking about this today is silver has extreme volatility and what it does is it creates short-term opportunities that many precious metals traders try to take advantage of. One of the things that we do here at Monex is… we try to educate you on these types of opportunities, if you are that speculative individual that likes silver and likes to potentially trade. Now, look at what’s happened. Silver has pulled all the way back down to $14.20– $14.08 is the lowest close we’ve seen this decade, as far as the daily close is concerned. So, it wouldn’t be unusual for those same traders that sold it in the 75 to 80 range that would have bought it back if it broke out above 90 to buy silver back in the low $14’s to try to see that trade once again. But, if you’re interested in learning about how to trade silver, what signals to potentially look for, and to be educated on the volatility and the potential profitability, please, give us a call here at Monex. So, we could help you find out if silver trading is right for you. Thank you.