The silver price was flat at the end of COMEX trading today, closing at $30.482, down $0.032 or 0.1%. The afternoon electronic session in New York however pushed spot silver back up to $30.64, adding nearly $0.16 or half a percent. Silver prices first gapped higher in the morning after overnight trading in Asia, but settled back down as floor traders decided enough is enough and began taking profits off the table.
The earlier session price slide can also be attributed to some defensive maneuvering in front of the slew of tech earnings due to be released in the afternoon. For the current update and real time charts, please visit PMBull’s Current Silver Price page.
Indeed, Google disappointed and dropped roughly 10% in after hours trading. Nevertheless, the broad equity indexes appeared to shrug off generally lackluster earnings and this may have been the green light for electronic session silver traders to march prices higher once again, leaving prices well above $30 once again. Tomorrow is another day, and skepticism remains valid, all the way up into new highs. If one is bearish equities and expecting a sell-off, one has to expect and accept a drop in the price of silver too. It doesn’t have to happen, and PMBull’s mantra remains the same. Buy physical silver now, for the long-haul and also keep powder dry for any major sell-off that materializes.
PSLV is already trying to add back its premium after yesterday’s 10% dive on Sprott’s announced offering. Perhaps in the end both camps in the PSLV debate will be correct. The premium portends silver shortages and a general distrust for SLV – iShares Silver Trust, but too much premium makes PSLV a dangerous trade that affords the fund the same status as any other paper silver product. Nobody has an algorithm that reveals what the right premium should be. Trade funds and consider the presence of a premium or discount an opportunity to leverage your position, or to arbitrage the difference between SLV and PSLV. Don’t neglect your physical silver and physical gold holdings, which may be the only real way to protect your wealth long-term.