Bearish Silver Sentiment Returns
Tiho Brkan | Nov 27, 2013 12:11AM ET
Chart 1: Silver sentiment is becoming extremely pessimistic again
Regular readers of this site will remember that the overwhelming part of my fund is invested in precious metals, and in particular Silver. The rest of the executed positions have been small trades, because the biggest conviction I hold is that all of this money printing from the US to Europe and Japan will end in total disaster.
As far as my posts are concerned, I've started buying Silver publicly (posted on my site in real time) in December 2011 as the price neared a 50% correction from its peak (May 2011 Silver was @ $50 and by late December 2011 it was at $26). Major purchases of similar scale were also executed in July 2012 when Silver was slightly above $26, followed by May 2013 around $22 per ounce and the final one in the chart below $19 in July 2013.
These major purchases focus on my long term holdings and do not include times I've shorted Silver from a shorter term trading perspective, including the recent triangle setup bear market analogues and so forth).
For a while now, I have maintained that Gold and Silver could make a lower low and create a fabulous buying opportunity (and possibly a final low), so it remains to be seen whether or not bears have the power to push lower in coming days, weeks and/or months. Even though this is a Portfolio Update, I want to make it clear that I am not buying yet, however... I am definitely getting ready!
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