The prolonged naked shorting of precious metals stocks has been immensely destructive to the sector and has left a battlefield littered with corpses, like the first day of the Battle of the Somme. The silver lining: Charts are showing a Head-and-Shoulders bottom.
While not all was well and back to normal this morning, electronic trading quotes enabled us to round up some prices for you to glance at. Spot gold was last seen near $1,713 while silver traded at $32 per ounce on the bid-side.
The silver battlefield is filled with bulls and bears fighting for dominance. Recently, the poor man’s gold has dropped to the $26 area. The struggle continues between the opposing sides. The bulls and bears are keeping their eye on this critical support level at 2011 lows.
Gold inched up on Tuesday ahead of Federal Reserve Chairman Ben Bernanke's Congressional testimony today and Wednesday which should provide the market with information as to whether the US central bank will flood the market with more US paper.
The driving forces behind silver's price come from investors, industrial demand and a global shortage. The world simply is using more silver than the mines produce and new silver discoveries are becoming difficult to find.