<< Read More: Silver Loses Its Mettle – Part 1

Last week I talked about unrealistic expectations for the price of silver (see Silver Loses Its Mettle). My comments were centered on two specific factors: 1) silver's primary role as an industrial commodity and 2) the fallacy of the gold-to-silver ratio.

Both of these items have their root in fundamentals, or lack of them.

In addition, I pointed out the fact that the price of silver has declined significantly in every single recession of the past fifty years.

Not surprisingly, the technical side appears to reinforce the lack of fundamental support for higher silver prices.

Below is a one year chart of silver prices (SLV - iShares Silver Trust ETF)…

As you can see, SLV has made consistently lower lows over the past seven months.Last week's plunge of fourteen percent to a new seven-month low came after a similar percentage decline in stocks that was supposed to take silver to new highs - not new lows.

The next chart is also of SLV. This one shows price action for the past four years...

As we pointed out last week, silver has still not exceeded its top from the summer of 2016.

With all of the arguments put forth in favor of higher silver prices, as well as the expectations for such, doesn't silver's price action seem just a bit disappointing?

Last chart for today is the ten-year chart for SLV...

If you were not disappointed before, you might be now. At the very least, you might want to reconsider your bullish exuberance.

There is nothing fundamental or technical which supports the calls for much higher silver prices.

Does that mean that silver prices cannot go higher? Of course not. But silver's price explosions are few and far between. And they don't last long.

Someone said recently, "If you love gold, you gotta love silver". I disagree.