Silver Investors Still Extremely Bullish, Even After 30% Drop

We've been following silver for quite some time now. I've been very bullish on it and invested quite a lot when it dropped to $9 in 2009, and exited too early when it started to rise. We then followed the parabolic craze that drove silver to close $49. And then, as I forecast, it crashed.

But what you normally expect during and after the crash, is doubt and pessimism from silver investors. As I explained before, the first reaction is denial, then realization, and finally capitulation.

Well, we discussed this several weeks ago, silver investors are still in denial and flowing into this market to jump on this great buying opportunity.

2011-06-07 — TradersNarrative:

The only measure that is showing capitulation is the amount of participation in the most liquid silver ETF: iShares Silver Trust (SLV). The other sentiment gauges have declined but they are not yet showing real capitulation. Among these is the premium/discount to NAV for the Sprott Physical Silver Trust (PSLV) which as of today’s close of +16% continues to exhibit a bullish stubbornness

2011-06-06 — ZeroHedge — Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Weeks

2011-06-01 — ZeroHedge — Silver Eagles Sales Through May Best Since 1986, Turkish Silver Bullion Imports Surge

And, as a bonus, Babak over at TradersNarrative published an awesome chart of silver. See for yourself: