The Really Bad News--The WSJ is reporting that funds associated with George Soros is selling their gold and silver positions. So far, there is no real proof to substantiate this rumor (and there won't be until Soros files his 13F with the SEC), but it has certainly not helped silver's outlook. There are very few courageous souls willing to take the other side of Soros because of his sterling track record. Further bad news for silver bulls is news that Carlos Slim, the world's wealthiest man is also selling silver.
Chart--The chart of silver is nothing short of terrifying for the bulls. It has all the hallmarks of a parabolic blow-off top which quickly crashes, leaving unsuspecting longs in a world of pain. You can see from the chart below how lonely buyers of silver are. The last time silver got this high (during the Hunt Brothers' episode) it promptly crashed and took over 30 years to recover. Not pleasant.
Silver Outlook--The current direction of silver is decisively down, especially with the recent margin hikes by the CME (and others) tempering investment demand for the metal. Expect gold to outperform silver as the yellow metal did not reach a parabola stage, meaning there is much more price support for gold than silver. That being said, silver is definitely in an over-sold technical condition, which allows for the possibility for a brief bounce. That bounce should be sold. The key levels to look for regarding silver is $36 and $32 which should provide some kind of support.
Black Swan Insights