Silver Market to soon end its Hibernation with Significant Upside Volatility
Silver has a long history of wide price variance. Since 1980, the precious metal has traded in a range from $3.505 to $50.36. The long-term silver chart has twin peaks in 1980 and 2011. The high in silver prices came back in 1980 when the notorious Hunt Brothers took the price of the metal to its all-time price pinnacle. However, in 2011, when gold moved to its record nominal high, silver traded to $49.82 and just could not make it above $50 for a challenge of the top that occurred more than three decades earlier.
So far since early February, silver has traded in a tight range between $16.10 and $17. 36 per ounce. Since last July and until April 18, the precious metal had made both higher lows and lower highs as it had been in a period of price consolidation. On the weekly chart, historical volatility in the silver futures market has declined to under 10% for the first time since 2014. Like a polar bear, or groundhog, silver had been in hibernation, but last week it moved to the top end of its trading range and broke the pattern of lower higher on the daily chart...