As illustrated via the solid blue RSI trendline
, monthly futures
have been accumulating pressure for about 7.5yrs. In our view, a monthly close above $16.15 would result in large capital inflows not seen since 2003. Risk associated with entering at present levels may be partially mitigated with a timely exit if weekly values close below $14.75. From a purely geopolitical perspective ( gold/silver ratio
, price history and mining supply conditions aside), silver
securities offer credible hedge value.