It's not Gold. Gold is up just 10% in last 30 days. The commodity that has rallied pretty vertically in June: Silver
Silver is the NEW GOLD
Here's the fun fact: Silver has seen a YTD (year-to-date) gain of 43.6%—compared to 26.5% in gold. That's a huge outperformance and a big part of this move has come in the month of June.
The up-move has been pretty explosive since Brexit vote on June 23. It's up 14% in last 6 trading sessions. The big question: Is the move over? Actually, No - the move appears to be just a START of strong up move.
Silver has been down and out commodity for long time now.
Here's the weekly chart -
As you can see in the chart above: Silver despite such a strong move is still below 200 week ma. It just indicates how depressed Silver was. Silver with this move now becomes a strong trading candidate and traders and technical analysts will now be evaluating chart to spot more momentum. The fun has just started.
History tells us: When an asset after long period of under performance picks up, they have a tendency to surprise on the upside. Will History repeat itself?
Why Silver prices are surging?
Frankly, I have no idea. I can guess. Number one reason: Strong fund buying 🙂 which seems very obvious. The other reason: Pretty dramatic decline in Treasury Yields post Brexit which has made precious metals attractive. As an observer of market - what matters more - What has happened, not why it happened 🙂
The gist of the article: Keep an eye on Silver because more drama is about to unfold, and with the drama you might see an opportunity.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers