What Are Some Leading Indicators for Silver?

Mike Maroney: Good afternoon! It’s Thursday, June 28th. My name is Mike Maroney and I’m coming to you today from the Monex Precious Metals Studio. Let’s do our Silver Centric video.

If you look at silver, silver traded as low as $15.91 spot today, and if you go back, you would have to go back to December of 2017 to find a lower intraday price, which was down in the $15.65-$15.70 range. From there, we had a solid bounce all the way back up to $17.45. What will happen here in the near term? A lot of people believe, based on what we call leading indicators, that silver may be getting very close to a bottom. Now, what leading indicators are we watching? Typically, we watch oil as a general leading indicator as far as the commodity markets in general are concerned. In the last eight trading days, the price of oil has rallied from $63 a barrel all the way up to $73 a barrel, that’s a 15% move, ten dollars. Obviously, a very strong trade.

Now, one of the things that is affected by oil, other than being a leading indicator, is the CRB. Now, the CRB had dipped below $200 and has rallied back approximately 4%, another quality leading indicator that silver may be ready to turn. Now remember, we’ve been trading in a very tight zone between $16-$16.80 for the last three months. Now, we’re below that zone. So, it makes some traders a little bit nervous, but if you want to buy low and sell high, the first thing you need to do is buy low. Based on where silver is currently trading, based on the leading indicators that exist in the market place, based on the fact that the stock market is starting to show some cracks in the armor, silver may be positioned for a quick bounce back. If you’re looking to accumulate silver, buying silver below $16 for the long-term, I think is a tremendous long-term strategy, but if you’re a trader and you’re looking for a potential quick bounce, we may get that opportunity here today or over the next couple days. Watch closely or give us a call here at Monex, so we can explain how silver and trading silver may fit into your individual portfolio. Thank you.