Clive Maund warns silver price looking vulnerable

Well respected chartist Clive Maund of clivemaund.com is warning that silver is forming a double top and could be about to retest the lows of 2008 if global financial markets fall further.

The problem is that silver is being treated as an industrial rather than a precious metal alongside gold.

Mr Maund notes that silver seems unable to break above its highs of 2008, and could be forming a double top, almost always a prelude to a big price fall. History might be about to repeat itself with a big spike down for silver.

Mr Maund thinks the chances that the price will break out to the upside is pretty small. At the same time the wider stock market appears to be completing a head-and-shoulders formation, again a classic negative sign and warning of a coming crash.