Last week, I mentioned that Silver had rallied into resistance and to expect a pullback or sideways action.
Yesterday the COMEX silver price dropped and retested the prior breakout level at $24.71.
So far, so good. Retests are important as prior resistance which came in around $24.80, should act as support going forward. If silver breaks down below the $24.80 level on a daily basis, the expect more of a pullback.
On a Weekly basis, silver remains in an UPTREND. An uptrend is defined as a series of HIGHER HIGHS and HIGHER LOWS.
source: JM Bullion
The premiums on American Silver Eagles remain extremely high at over $20 per ounce when compared to the COMEX Silver price.
The price of physical silver is de-coupling from the paper price on the COMEX Futures Market. Something needs to give in order for this disparity to reconcile. Either the price of physical silver comes down or the price on the COMEX goes up.
Place your bets!
Peace out and Stack On!