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(Source: TC2000.com)
As shown in the chart above, the performance of the SIL has been horrendous since earlier this year, with the ETF plummeting from a high above $50.00 to below $34.00 before seeing a bit of a relief rally recently. In a highly emotional sector that rarely trades on fundamentals short-term, catching falling knives is rarely wise. However, there comes a point where fear in the market and pessimism morphs into extreme pessimism and complete capitulation, and this looks like what we may have seen last month for silver and many silver producers. This is evidenced by bullish sentiment falling to its lowest levels in more than three years in October based on its sentiment moving average, with the last occurrence (September 2018) being a major bottom for the precious metals complex. History does not have to repeat itself, but if there were ever a time to be open-minded to buying the dip, we’re getting very close to that point.
