Look at the chart below from technical analyst Clive Maund that he says makes it clear that ’silver HAS NOT been in a larger order bear market but a giant correction these past three years’.

His latest silver market update (click here) concludes silver ‘is at an excellent point to turn up and begin a major new uptrend’…

‘On its 14-year chart, which shows all of the bull market in silver from its inception, we can see that, although the drop from the 2011 peak has been severe, involving losses of more than 60 per cent from the highs, it has not thus far resulted in a breakdown from its long-term uptrend, which remains intact.

‘Over the past year silver appears to have been basing in the zone of strong support shown with its supporting long-term trendline gradually coming into play to provide additional support. This is in fact the perfect setup for a major new uptrend to begin, and the only further supporting factor required is a favorable COT structure – and that we now have.’

Bullish comment

This is not the first time Mr. Maud has been bullish on silver but it is true that the real breakdown in the long-term trend to very much higher silver prices has not been smashed, despite many contrary predictions among the more bearish analysts.

At the same time public opinion about the silver outlook is almost universally bearish – a good signal that prices are as low as they are going to go. Some further weakness is possible, concedes Mr. Maund but September is traditionally the best month for the shiniest of precious metals:

…also from Arabian Money:

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