Silver bulls got trampled today as prices tumbled 7 per cent. The move was somewhat ironic as Senator Ron Paul used a silver coin today in an effort to demonstrate to Fed Chairman Ben Bernanke that inflation was out of control.
Barclays Capital’s technical analyst Jordan Kotick sent this chart to clients this morning showing that silver had formed a double bottom and that prices were breaking out.
Perhaps today’s silver sell-off was a one-off. Because, if Kotick is right, then prices will soon head to $45 oz.
Photo: Barclays Capital