SLVO

The tech-led selloff in U.S. equities is likely only halfway done, according to the Morgan Stanley strategist whose warning last month about the top-heavy market now appears prescient.

The price action in March is a reminder to expect the unexpected. The downdraft launched an incredible rally. A drop on risk-off could create another bargain. Three reasons an all-time high is on the horizon. SIL and SILJ- Keep the scale-down buying levels wide.

Silver open interest has largely shifted to December, but there is still some trading going on this month.Healthy delivery notices occurred on the first two intent days for September, meaning a large amount of physical silver will change hands.This has been bullish for the silver price, prompting a nice little silver price recovery.We will see how much paper trading occurs the rest of the month to help us determine overall price direction.

In the past few months, record inflows into precious metals investment funds signaled growing demand among the investment community.Precious metals, as a type of defensive assets due to their low correlations to traditional risk assets, can expect more demand as the U.S. dollar weakens and geopolitical risks continue to evolve.One important driver for the bullish case for silver is the disrupted supply of the commodity due to COVID-19, combined with recovering demand in key markets like China as parts of the global economy come back online.

Silver stops below $30, drops, and consolidates.The breakout to the upside was a significant event.The ratio is heading for the long-term average.Silver speculation should increase above $30.I believe that a new all-time high is on the horizon for silver- SILJ should outperform the metal on a percentage basis on the upside.