RE: SILVER LOSES ITS METTLE
Last week I talked about unrealistic expectations for the price of silver (see Silver Loses Its Mettle). My comments were centered on two specific factors: 1) silver’s primary role as an industrial commodity and 2) the fallacy of the gold-to-silver ratio.
Both of these items have their root in fundamentals, or lack of them.
In addition, I pointed out the fact that the price of silver has declined significantly in every single recession of the past fifty years.
Not surprisingly, the technical side appears to reinforce the lack of fundamental support for higher silver prices.