Money Metals Exchange
Interestingly we have seen several precious metals analysts suggest that something quite interesting is taking place in the silver market. For example, Alasdair Macleod wrote an article; A Whale Is Accumulating Silver Futures, implying that the Chinese government may indeed be acquiring a significant long position in the silver market. Macleod believes China may be going long silver, via the futures market, to protect its supply by hedging as the price heads higher in the future.
So, how can we tell if silver is entering into a new bull market? Well, the biggest indicator tends to be the price. While physical supply and demand factors impact price, we have seen years in which demand fell during rising prices, but also surged during extreme selloffs. Thus, it’s important to look for key price levels that will signal that silver has begun a new bull market.