How silver could bounce back after a ‘bearish 2017’
“Now that we have fallen below $16, we are back in what I believe is an extremely attractive accumulation zone,” Peter Spina, president and chief executive officer of GoldSeek.com, told MarketWatch.
He said prospects for silver are “looking significantly stronger” in the second half of the year.
Commercial traders such as banks have engaged in “huge short covering,” moving into more bullish positioning, according to Commodity Futures Trading Commission data, he said. Meanwhile, “the more momentum-driven funds have sold off a large chunk of their paper silver to them,” he said. “History has shown this to be a bullish indicator for the coming reversal in silver prices.”
Spina said he doesn’t expect silver to “do anything big,” like climb above $20 this year, but it could “easily jump a few dollars from here, which is quite significant in percentage terms.”
Silver prices could still “dip briefly to low or sub-$15 on a final wash out,” warned Spina. “But the risk/rewards here favor adding to physical silver positions and adding to some of our favorite silver miners.”
“The bullish price scenario for silver keeps growing over time and within the next couple of years, I believe we will see silver prices target the mid-$20s, with a possible spike towards $30,” said Spina.