Our silver forecast for 2020 and 2021 is out. Visibly, conditions have changed in the silver market. InvestingHaven’s research team is on record calling for a new bull market in silver, one that will gradually accelerate in pace. In sum we expect 7 golden years for silver investors will new all-time highs in the price of silver by 2026. What does all this mean in the short term though? And is silver going to be a better investment than gold in 2020? What about the last few months in 2019? We at look 4 charts in this article to answer the question whether gold or silver will be the better investment going into 2020. We also include a viewpoint on precious metals stocks as another investment option to consider.
Obviously we start with the chart as per our investing method.
The gold and silver charts should suggest whether gold is a better investment than silver going into 2020.
The daily gold chart is the one we start with. As said many times analyzing the precious metals space always starts with the gold trend. That’s because especially early in a bull cycle it is gold leading the way for silver and precious metals miners.
Gold visibly had a great bull run between May and August. The subsequent decline wasn’t that significant.
Right now we see this rounding bottom formation which might have a bullish outcome.
Although the intermarket conditions changed (it is not longer falling rates that are pushing gold higher) it seems that gold still has an appetite to remain solid. We need to keep a close eye on this as it’s a crucial aspect even though we don’t have a clear answer on which intermarket effect might be driving gold now.
Silver is different It continued its uptrend a week ago. Look how the breakdown in September resulted in a short term sell off which ended last week.
On the weekly silver chart (zooming out) we see how silver might be preparing a move to $21 provided it clears $19. In no way do we see a similar setup in gold, it’s really different. That’s the reason we believe silver is a better investment than gold going into 2020.
Last but not least we look at precious metals miners. After reviewing some 100 charts it became clear: precious metals miners are explosive. We picked out one, and just one chart to illustrate this.
Below is the precious metals miners against the S&P 500. This recent retracement seems to have ended. We see both horizontal and falling support. We also see a breakout taking place now.
Because of this we expect precious metals stocks to be a better investment than gold and silver going into 2020. And silver to be the better investment against gold going into 2020.
When does this call invalidate? Once the uptrend lines outlined in this article are violated to the downside!
