Gold has been acting very strongly after the Corona crash (mid-March). Our gold price forecast for 2020 is about to be achieved. However, silver was much weaker, and did only recover partially. Gold reached the highest level in recent weeks, months and even years. Silver though is way below its recent highs. Is weakness in silver set to continue, or may silver start outperforming? Will silver get close to our forecasted silver price?
We track gold and silver closely in our Momentum Investing portfolio. So we have to be respectful to our members, and cannot share all the details of our thinking and positions.
What we can share though is this one chart that Momentum Investing members received a few days ago. It is the silver intraday, and we embed it below.
Yes, it looks like silver is ‘sandwiched’ between two important trendlines. But the reality is that the silver price is setting a reversal right between its 2019 and 2016 breakout levels.
This is a bullish setup until proven otherwise.
Will silver outperform gold going forward?
It *may* happen. But the point is this: in any recovery it is gold leading silver higher, not the other way around. Similarly, silver outperforms gold once there is sufficient ‘momentum’ in the precious metals market.
Whether this is THE time to get into silver or not will be our focus in the next days and weeks ahead. Members of our Momentum Investing portfolio will receive the updates ‘in real time’ through momentum alerts. We are seriously considering a silver position, and have clear conditions on when exactly we want to take such a position. Our public blog will feature silver updates with a delay though.