Silver is down slightly since our June short note and now down around 15% since our short recommendation in March.
The risk/reward doesn’t look attractive at these levels. Markets are fragile, higher energy prices are causing inflationary pressures which are playing out in the bond market. While that should be positive for metals in general, the overall senitment around risk is changing with large leveraged positions seeing profits taken.
We think silver will continue to consolidate through to the end of the year, forming a base, in which it can then build the next upward phase.
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer’s understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.