Silver Forecaster Index

The silver forecaster index is based on the gold forecaster index but adds the CPI component to it.

 

 

The reason why the CPI is added is based on the inverse correlation between the gold:silver ratio Vs. CPI. Higher inflation benefits silver more than gold.

To monitor the CPI, you can use the 10-year breakeven inflation rate, which is updated daily.

 

Additionally, gold tends to outperform silver when the unemployment rate rises.

Watch the SHFE. Low inventories might signal a bottom.

Check silver backwardation.

Backwardation is when the basis goes negative.

Check the supply and demand.

Check the global inventory flows.

Check managed money long positions.

Check the price targets.

Check open interest.

Check Shanghai silver premiums.

Check fundamental price of silver.

Check commercial shorts.

Check put call ratio.

Check minfutures daily report on: ETF flows, spreads and open interest.

Here is a full checklist.