David Fuller's view

I have been building a long position in Silver futures during the last two months.  The price action has been choppy recently – no surprise there as silver is high-beta gold, but volatility does add a tactical challenge with leveraged positions. 

Just before the Easter Holidays, I had purchased another silver long at $15.278 on 23^rd March.  Today, a protective stop in silver was triggered this morning at $15.10 for the May contract, against my purchase at $14.988 on 26^th February.  With hindsight, I wish I had lightened my silver positions a couple of weeks ago, when it was briefly above $16 over three days, because the price fell sharply on the 23^rd, on rumours that the Fed would raise rates at today’s meeting.  I did not think that would happen but it weighted on the market sufficiently to trigger today’s stop before Janet Yellen reiterated that the Fed would proceed cautiously on rate hikes due to global economic weakness.  Overall, I think we are seeing a gradual, partial remonetization of precious metals in investors’ eyes.