A tectonic shift in the perception of silver has emerged recently. Usually playing second fiddle to the most popular precious metal, gold, this year silver is up around 18% to $16.64. Importantly, this means that it is outperforming gold for the first time in many years. An increase in fundamental demand, mainly from China, in the form of industrial applications like the production of consumer electronics or ethylene oxide has been the initial push higher. With the recently added dimension of speculator interest, this has meant that long positioning is reaching its highest level since 2006. Can the momentum continue higher? From a technical perspective the next area of resistance is $17.78, the May 2015 higher. Undoubtedly, this area will be watched closely.

Good luck,

Jordan Hiscott, Chief Trader

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