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Is Silver Overbought? #silver #preciousmetals #analysis #silverprice #investing #commodities

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 Is silver overbought?

Well, having risen over 23% in the last 30 days to over $54 an ounce, it is. But you need to understand the technical meaning of 'overbought.' It simply means the price grows quicker than typical for the recent trend. It's a technical label, and it doesn't necessarily mean the price is about to drop.

Now, it could indicate the possibility of a correction in the near term. In fact, corrections in a bull market are healthy. But "oversold" doesn't mean silver is "overvalued." In fact, there are technical indications that it isn't. The gold:silver ratio is still over 79:1. That indicates that silver is historically UNDERPRICED compared to gold, and it's important to understand the dynamics behind this price surge.

In a nutshell, there simply isn't enough silver to meet the demand. So, while silver is technically overbought, it doesn't appear to be overpriced - given the market dynamics.

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Sound Money Defense League News
Stefan Gleason is President of the Sound Money Defense League, a national grassroots lobbying organization working to restore gold & silver to their historical role as America's constitutional money. He also leads Money Metals Exchange, a national precious metals dealer with over 50,000 customers. Gleason has frequently appeared on national television networks such as CNN, FoxNews, & CNBC, & his writings have appeared in hundreds of publications such as the Wall Street Journal, TheStreet.com, Seeking Alpha, Detroit News, Washington Times, & National Review.
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