If you’re a student of financial market history, consider yourself lucky to be living through what we’re seeing in the gold and silver markets right now. As even beyond the recent price moves, there are truly historic events taking place, which we will dig into in the column.
Here’s the current pricing, which has the gold futures at $4,972 and the silver futures at $75.93.
However, these prices are quite a bit higher than last night, and you can see in the next chart how the silver futures went as low as $63.90.
That’s after rebounding to a $91.75 high on Wednesday of this week, following last week’s crash from the new all-time silver futures high of $121.78, down to a low of $71.20 this past Monday.
So to recap, the silver futures hit an all-time high of $121.76, then sank to $71.20 by the following Monday, and then rebounded to $91.76 by Wednesday, before falling to $63.90 this past Thursday night, and then coming back to the current $75.93 level.
Like you’ve heard me mention many times over the past year, there’s a high probability of continued volatility like that in the weeks and months ahead. I can certainly understand how unnerving that can be at times, and if you find yourself really having trouble sleeping at night, that’s often a good sign that finding a time to make sure that your position sizing is truly appropriate for the other variables in your life might be worthwhile.
But we’re seeing massive swings, and what’s really fascinating are some of the developments that are happening in the background.
First of which is that not only are we continuing to see silver leave the Comex, but the Chinese inventories are getting dangerously low, in a market that’s already been experiencing supply shortages for months, which has led to increased premiums in the market underpinning the industrial silver center in China.
Source: SGT Report
