Silver vs Silver Volatility Alert
Has silver topped or is silver consolidating?
Appears hedge funds and trading desks may have found a new way to trade silver without trading silver.
Silver volatility reached all time high levels in January. Many are now shorting this volatility index to capture trading revenue or profits. The reduction in volatility is also calming the silver price. The whippy swings in price have cooled off. A trading range is developing.
Players appear more confident in the short term that volatility will pullback vs silver rising in price. Remember this is short term trading, not long term price manipulation. As long as the Middle East headlines captivate investor attention and rise in the stock market to new highs pull in new capital flows, the precious metals are taking a back seat at the moment. Thus another reason why large trading firms are selling silver volatility and not actively trading silver itself.
This is evident by the continued crash in Silver futures open interest which now stands at 99,168 contract. A level not seen since 2011.
See chart below. Red is SLV Volatility and Blue is the silver price. Volatility continues to stay in a declining wedge. This is an orderly decline at the moment. This formation is dangerous for many playing the short side. If the wedge breaks to the upside, the move could be very powerful and could be a reason that aids the silver price.
What this means for silver? appears to be a consolidation and trading range while volatility resets. This is constructive and something that could set the stage for a move higher if volatility finishes compressing.
If you like the analysis, please repost so help others can understand the current market structure and why the silver market is acting the way it is.
@RafiFarber No they are not fake. I just think its more than actually reported. But thats just what i think. I am not actually living in Israel so i guess you might know better.
US Secretary of War Pete Hegseth talking in 2018 about the 'miracle' of reconstructing the 3rd Temple of Solomon, the place where the Antichrist will be worshiped according to our Orthodox Christian faith.