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00:00I AM VONNIE QUINN. ROMAINE: I AM ROMAINE BOSTICK. IT IS TIME FOR CHARGING FUTURES. HERE ' S ABIGAIL DOOLITTLE. THERE IS A TWINKLE IN PRECIOUS METAL. ABIGAIL: I LIKE THE WAY PUT THAT. THERE IS A TWINKLE FOR PRECIOUS METAL. WE HAVE GOLD AND SILVER HIGHER. THAT IS THE STORY OF THE YEAR. LET US HONE IN ON SILVER FUTURES. THEY ARE UP 15.7% ON THE YEAR. BEING HELPED OUT AGAIN BY THE WEAKENING DOLLAR. BEING HELPED OUT BY MONEY MANAGERS LIKING SILVER. WE LOOK AT THIS CHART IN THE BLOOMBERG TERMINAL. WHAT WE ARE LOOKING AT IS THE SILVER MANAGE MONEY INDEX. BELOW THE YELLOW LINE TELLS US MANAGERS ARE SHORT ON THAT LONG. VARIOUS ROUNDS OF QED, SULFUR WAS VIEWED IN A BULLISH MANNER. IN 2018 AND 2019 ONCE AGAIN A BULLISH VIEW BY MONEY MANAGERS. THAT WILL INCLUDE THE CHIEF INVESTMENT STRATEGIST. PETER BORISH JOINING US. YOU LIKE SILVER. PETER: WE LIKE THE COMMODITY COMPLEX. WHEN YOU THINK ABOUT IT, YOU THINK ABOUT IN THE 2000S SHORT OF THE DECADE OF THE BONDS. THIS DECADE WAS THE DECK WOULD -- DECADE OF EQUITY. COULD THIS BE THE DECADE OF -- SILVER BOTTOMED IN THE YEAR. 1989 WAS THE RIGHT TIME TO BUY JAPANESE EQUITY. YOU WANT TO THINK ABOUT WHAT HAS BEEN OUT OF FAVOR? YOU ARE SEEING THE SHIFT FROM NEGATIVE SENTIMENT TO POSITIVE SENTIMENT. THAT CAN CARRY FOR A BIT. WHETHER YOU WANT TO PLAY OPTIONS OR PLAY THE BREAKOUT IN SILVER. ABIGAIL: IF THE NEXT DECADE IS THE DECADE OF COMMODITIES, GOLD WOULD BE ONE WAY TO DO IT. ESPECIALLY WITH SILVER GOING BACK ABOVE THE AVERAGE. PETER: IT IS JUST ON THE 200 MOVING DAY. YOU WOULD NOT CONSIDER IT A MOVING BREAKOUT. THE INITIAL MOMENTUM IS THERE. ONE THING WE HAVE SAID -- AND I SAY REPEATEDLY -- EXPANSION EQUALS PRICE EXPANSION. PRICES WILL CONTINUE TO BREAK TO THE UPSIDE. ABIGAIL: IT SOUNDS LIKE YOU THINK SILVER WILL GO ABOVE THAT $17 PER OUNCE? WHERE TO IF IT DOES? PETER: IF YOU LOOK AT A CHART OF THE CURRENT FUTURES CONTRACT, IT COULD GO UP TO $18.50 AND THE HIGHEST $20. IT CAME FROM THAT LEVEL AND CAME ALL THE WAY BACK DOWN. EVEN IF WE DO A NORMAL RETRACEMENT, YOU HAVE TO MAKE NEW HIGHS. YOU HAVE A LONG WAY TO GO TO THE UPSIDE. ABIGAIL: THAT AREA OF CONGESTION LOOKS LIKE A BULLISH FLAG. PETER: AND A TRIANGLE AS WELL. ABIGAIL: YOU CAN MAKE THE CASE FOR $22. YOUR MATCHING OPTIONS ON SILVER FUTURES. YOU ARE SAYING YOU WOULD WANT TO BUY. PETER: VOLATILITY IS LOW. THAT IS UNUSUAL IN THE COMMODITY COMPLEX. ABIGAIL: WHY IS IT LOW HERE? PETER: YOU HAVE NOT HAD NET RANGES. YOU HAVE NOT HAD MAJOR MOVE . YOU ' RE NOT PAYING THE INHERENT AMOUNT FOR THE PREMIUM RELATIVE AFTER A MARKET MOVE . AFTER THAT YOU WANT TO -- THERE IS NOT TREMENDOUS AMOUNTS OF IMPLIED VOLATILITY. ABIGAIL: A NICE OPPORTUNITY.

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Why Quad Group's Borish Is Bullish on Silver

In this edition of "Charting Futures," Quad Group Chief Investment Strategist Peter Borish examines silver futures with Bloomberg's Abigail Doolittle on "Bloomberg Markets: The Close." (Source: Bloomberg)

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