Silver set for sustained upleg following 30% gain since July
Analysts argue that silver is set for a sustained rise following a 30% surge since July.
Adam Hamilton of Zeal Investment writes that despite concerns amongst traders that silver's abrupt gains since the summer will be followed by a sharp and precipitous correction, a fresh upleg for the precious metal is "likely just getting started."
Hamilton says that the current round of price gains are perfectly in line with patterns established since 2003, and that silver is still far from overbought:
Rallying merely 31.9% higher over just 2.7 months is truly nothing for silver. I actually find these numbers very interesting. If you triple both of them, it would take silver to a little under an average upleg’s gains in just over an average upleg’s duration. In other words, since its latest mid-summer lows silver is nearly perfectly on pace with what you’d expect in a major new upleg running in line with the averages!