Silver Reverses Off Pre Market Highs
Silver reversed off the early morning highs in dramatic fashion. The iShares Silver Trust (NYSE:SLV) traded above $47.00 pre market before falling to a low by mid morning of $44.53. When silver was trading at the highs, it was getting close to the 31 year old all time highs from 1981. The last run in silver occurred when the Hunt brothers tried to corner the silver market. Spot silver ran up to $50.00 before reversing dramatically. The Hunt brothers ended up filing for bankruptcy. The highs of silver this morning were just shy of that level.
The reversal could be a short term top in the silver market as the hype hit a crescendo over the weekend. Whenever the average trader jumps on the bandwagon of any stock, commodity or currency, the trend is usually complete and will reverse. This may have happened over the weekend and this morning in silver. The SPDR Gold Trust (NYSE:GLD) is trading at $147.00, +0.26 (+0.18%) while the United States Oil Fund LP (NYSE:USO) is trading at $44.40, -0.17 (-0.38%).