Speculative Buying Underlies Strength In Silver

I just cannot emphasize how much I like the silver chart, to me it looks ready to pop in what could be a 20% rally in as little as 4 weeks.  We know silver is capable of such moves and I see the current coiling action being extremely similar to the move which occurred over the summer of 2012 (see chart below).  We have a good pickup in speculative buying (COT) while the underlying technical strength of this Cycle looks great.  The Cycle count is very favorable and we have what looks to be a massive double bottom triangle breakout coming!

Platinum is getting some love too; it’s breaking-out of its own bear market decline.  Up $130 in just the first 4 weeks, it shows that the entire sector is attracting interest.  It is overbought, but with a double bottom in place it appears to be in the early stages of a new trend.


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