Silver Futures Index $SILVER (SILVER)

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This ‘long-neglected’ commodity is ready to roar, says Commerzbank
By: MarketWatch | July 25, 2019

Navigating your way around this hated bull market right now? Here’s what to do.

“Either stick with your positions or avoid this market,“ says Cracked Market blogger Jani Ziedins who added way too many people are “buying the pop and selling the dip” and giving money away in what should be a modestly profitable market.

That seems like some solid advice as the S&P 500 grinds out more highs. Investors will need to stay on their toes on a huge earnings day, with Amazon results due later and a European Central Bank press conference ahead (key rates were left unchanged).

Switching gears a little, our call of the day from Commerzbank says a “long-neglected” commodity has waked from a “deep slumber” and is ready to roar.

Silver SIU19, -0.01% hit a 13-month high last week and marked its eighth gain in nine sessions on Wednesday, reaching $16.626 an ounce.

The commodity is “still relatively good value as compared with gold, which is why we expect the upswing to continue,” Commerzbank analyst Carsten Fritsch, who bumped his year-end forecast to $18 an ounce, told clients in a note Thursday. Silver is up 6% year-to-date versus gold’s gain of 11%.

He says investors likely woke up to silver’s potential earlier this month — it hit the lowest level vis-à-vis gold since 1992. Money has been pouring into silver exchange-traded funds, while speculative financial investors have been betting on rising silver prices since mid-June, after bearish views from late May, Fritsch says.



“Silver is thus well on its way – like gold before – to freeing itself from a prolonged sideways trend,” said Fritsch. But to match what we’ve seen for gold this year, silver needs to reach $20, not seen since 2016. Hitting a six-year high like gold would mean $25 per troy ounce for silver, he added.

The commodity is a bit softer this morning. One step at a time.

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