It’s been another rough month for the precious metals bulls, with the price of silver (SLV) down another 2% this month and nearly 15% year-to-date. While precious metals are still outperforming other asset classes, sentiment has finally reached a point where it is possible to see stable bottoms. Read more to find out why silver (SLV) remains in a bull market despite these struggles.It’s been another rough month for the precious metals bulls, with the price of silver (SLV) down another 2% this month and nearly 15% year-to-date. While precious metals are still outperforming other asset classes, sentiment has finally reached a level where it is possible to see lasting bottoms. We also saw a dramatic reversal in a critical level after the Federal Reserve meeting. It suggests that the low for the industrial metal might be finally here. We should expect meaningful upside for SilverCrest Metals, (NYSE:), and GoGold Resources(GLGDF) if the low holds. Let’s take a look below:

(Source: Daily Sentiment Index Data, Author’s Chart, TradeFutures.com)

The chart below shows that silver spent many weeks under the 20% bulls level since August. This suggests that there are at least four bears to every bull in terms of sentiment among the market participants over a longer period. These are rare events in recent years. The few occasions that have fallen below the 20% mark were usually very brief. The recent bouts of pessimism are encouraging because these extreme periods often cause investors to be discouraged and push them out of trades at the wrong times.

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