Silver Update for Jan 23, 2012

Visit PMBull’s Current Silver Price page to view today’s update with multiple live 24 hour silver price charts in 10-second to weekly time-frames.

Jan 23, 2012 07:10 PM EST – The silver price today settled COMEX at $32.333, up $0.0586 or 1.9%. Globex electronic trading in New York only added another $0.02 before the session ended.

Why were silver prices up today? Euro strength probably helped. Another rumor was passed off by the Financial Times with an hour to go in equity trading, causing virtually all risk asset classes to ramp, just as they were beginning to roll over. The rumor / denial game gets old after awhile. Many are increasingly buying into the rally on hopes that the Fed will hint further at additional easing later this week. If not that, they are hanging their hat on technicals. We saw at least one “this time its different” article published by a technical analysis blog. The more they buy in, the riskier the markets get. There is an utter lack of volume, and a sharp decline in short interest, both of which should be viewed as bearish.

After Friday’s breakout rally, the silver price felt somewhat muted today, even though it managed to climb nearly 2%. The bulk of today’s move was realistically a continuation of Friday’s rally during electronic trading Friday afternoon, followed by overnight trading in Asia. The dynamic today was a pullback into COMEX open, followed by a run higher, then a pullback throughout the rest of the day, with silver prices ending New York relatively flat. All the gains came outside of COMEX floor trading.

This is the difficulty with watching the world silver price on a 24 hour chart. The demarcation line for determining daily gains and losses is fuzzy. For many, simply watching the price for a Silver ETF is easier. Yet the reality is that the price of silver moves on a 24 hour basis. It is possible to purchase Physical Silver online at any time and often, the best time to buy physical at the best price presents itself during panic selling, sometimes outside of normal silver ETF trading hours.