Reading Silver’s Price Performance So Far in 2016



Best performing precious

On a year-to-date basis, silver has been the best performing precious metal, while over the past five trading days, it has been tumbling sharply. Silver futures for December expiration have fallen about 3.7% on a trailing-five-day basis. Its trading range was $19.06–$19.27 per ounce.

As silver is trending lower, it seems it to be preparing for a bull run. The RSI (relative strength index) for silver is close to 46. The price fluctuations in silver can be closely tracked by funds such as the iShares Silver Trust ETF (SLV) and the Physical Silver Shares ETF (SIVR). These two funds have seen significant returns in 2016 following safe-haven bids.

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The rallies in these precious metals and funds considerably picked up momentum after the Brexit vote sent tremors across the globe.

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Precious positions

Silver-based shares including Pan American Silver (PAAS), Coeur Mining (CDE), First Majestic Silver (AG), and Hecla Mining (HL) have also seen rises in their prices. About 50% of the time, these mining companies take their price changes from precious metals. In this way, they have a high correlation with precious metals.

According to CFTC (Commodity Futures Trading Commission) data, net long silver positions had risen 0.5% to 71,000 contracts as of September 23, 2016. Silver prices were trading around $19.50 per ounce on the same day. Platinum’s position fell for the sixth week, down 11% to an 11-week low of 22,000 net long contracts. Palladium was trading 1% lower at 13,000 contracts during the week ended September 20—a ten-week low.


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