KITCO NEWS -- With the silver bears in full swing and the metal trading below $16 an ounce -- the lowest level this year -- how can commodity investors deal with this summer slump? "Many traders have been scratching their heads on how to try and take advantage of the currently low volatility environment," said Phil Streible, senior market strategist for Chicago-based RJO Futures. "Historically this has been a value zone on the charts followed by a significant rally. One of the key ratios to keep an eye on is the gold/silver ratio that measures the number of ounces of silver it takes to buy one ounce of gold," Streible said in an interview with Kitco News. He added, "[W]ith the Fed minutes behind us and expectations already baked in for a rate hike and further reduction of the balance sheet, I believe that silver will see the next major rally on the heels of an escalation in geopolitical risks." August Comex gold was last up $1.80 an ounce at $1,223.40. September Comex silver was last up $0.079 at $15.975 an ounce.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.