Silver: This Indicator Reaches "Record Extreme"
Hedge funds are betting on silver as the precious metal's price surges
by Bob Stokes
Updated: September 05, 2019
On November 14, 2018, after silver had been declining for 5 months and had just made a new 2½ year low at $13.87, we issued a rare, combined Elliott Wave Theorist / Elliott Wave Financial Forecast Interim Bulletin that said, in part:
Silver may have made its low for the year this morning.
As it turned out, silver bottomed that very day and has rallied 41% as I write on Sept. 4, 2019.
As you can see on this chart from our new, September Elliott Wave Financial Forecast, right now silver also deserves your attention, because one time-tested indicator has reached a record extreme:
This week started with a higher gap opening. Interest in silver is naturally increasing as prices do, as shown by the record rise in the monthly volume in silver put and call options.
This bullishness toward silver has been reflected in financial headlines:
- Why Silver Will Be a Better Bet Than Gold if the Precious Metals Rally Continues (TheStreet, July 31)
- Silver Scramble Erupts on Gold Gains as Investors Play Catch-Up (Aug. 28, Bloomberg)
- Hedge funds holding gold but betting on silver... (Kitco, Sept. 3)
Is it wise to jump on board this fast-moving silver train now? After all, many prognosticators believe silver's upward rise has more to go.
Of course, it's possible that silver's bullish action may persist for a time.
However, investors would do well to consult the Elliott wave price pattern of silver.
Our analysts are doing just that and letting subscribers know when they expect silver's upward push will terminate. Just as important, our analysts are letting subscribers know how far they expect silver's price will drop thereafter.
Get EWI's latest insights on silver -- as well as gold -- without any obligation for 30 days. Look below for details.
Financial Trend Change(s) Imminent!
Major U.S. financial markets are on the cusp of major trend changes.
Their Elliott wave chart patterns speak loudly and clearly.
At junctures like this, many investors still expect the current trend in these markets to persist. These are not investors who've been on board since the start of these trends, but market participants who just now are trying to play "catch up."
Avoid such a precarious strategy.
Our analysts have identified each U.S. market which appears to be on the verge of a significant trend change and you can tap into our analysts' insights now -- via a 30-day, risk-free trial.
Continue reading to learn more …
Elliott Wave International’s Financial Forecast Service
All month long, FFS shows you the patterns in U.S. stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. We show you where the trend is now, and when prices should turn -- specifically, we show the pattern at multiple degrees of trend, with precise risk/reward calculations. If you have fewer surprises, you can be better prepared.
Here’s how it works:
Subscribe now and read the current issues.
Fine-tune your portfolio plan.
Relax. Watch the markets with your targets in mind.
Your Financial Forecast Service Team Helps Put YOU in Control of the Market’s Trends and Turns
Your Financial Forecast Service guides -- three of the best-known market analysts in the world:
- 1. Robert Prechter, Author of 16 market-related books, New York Times Best-Selling Author and Editor of Elliott Wave Theorist
- 2. Steven Hochberg, Editor of the Short Term Update and Co-editor of The Elliott Wave Financial Forecast
- 3. Peter Kendall, Author of The Mania Chronicles and Co-editor of The Elliott Wave Financial Forecast
As featured in:
Here's what you get with the Financial Forecast Service
At the end of each month, you get a 30-60 day look ahead at the markets. Elliott Wave Financial Forecast lays out expected trends and turns in stocks, gold, USD and bonds.
3x Per Week
At market close every Monday, Wednesday, and Friday, you get the Short Term Update, alerting you to what’s changed and what’s upcoming in the next several days.
Every month, Robert Prechter sends you his latest research about waves of social mood in the markets in the Elliott Wave Theorist, so you always know the full picture.
Start Your Subscription Now
for 1 month of unparalleled market insights
Join Club EWI — Free
Unlock tons of free reports, videos, forecasts and more – designed for investors like you.
Analysis for Investors & Traders
Services for Professionals