“It” is about to happen. One of the potentially most profitable markets is about to start moving as it is near a giant breakout. We are talking the silver market. We provided extensive coverage in recent months, so InvestingHaven followers have been tracking the silver market closely. As with everything in life ‘good things take time but great things happen all at once.” The silver breakout has been going on and on and on, but once it happens which may be NOW it is expected be run hard. Remember, as per Tsaklanos his 1/99 Investing Principles, the times that a market rallies in a way that makes you excited is just 1% of the time (on long term charts) so you better be patient. Our silver forecast 2019 may materialize in no-time, and our silver stocks forecast as fast. The silver charts are awesome, check them out.
For the silver price chart we have to tune in to the weekly timeframe.
What we see is this triangle-alike formation between 2014-today which was set after the giant breakdown of 2013. Since the summer of 2019 (where we flashed a sell alert on silver by the way, and it is still available in our public archives) silver has been moving in one direction: down.
We see many attempts for silver to test its downtrend, but circumstances were simply not right. That’s why we have _not_ been bullish on silver between summer 2016 and late 2018.
To illustrate this we published this conviction on MarketWatch in April of 2017: silver has peaked for the year, we said, and were proven right. The set of circumstances were not in favor for a strong year in gold nor silver. However, 2 months ago, we were very vocal and convinced about a gold price breakout, and said so in Why gold’s a ‘bargain’ at less than $1,300 an ounce.
In the last 6 months we have been very vocal about gold and in particular silver:
Silver: An Explosive Metal In 2019 (June 2019)
The 3 Most Profitable Market Trends Right Now: Rates, Inflation, Silver (May 2019)
Silver Stocks: A Rise Of 6 Pct Will Confirm Multifold Returns In 2019 (March 2019)
Gold, Silver, Miners: 3 Spectacular Breakout Charts Suggest Much Higher Prices Underway (Feb 2019)
Silver In The Future: This Is A Must-See Silver Chart (Nov 2018)
Yes, good things in life take time to happen … so unsurprisingly patience of investors have been thoroughly tested. As the saying goes, see also our 100 investing tips, “good things take time to happen but great things happen all at once.”
Looking at below chart though should give the patience and courage to simply wait for “it” to happen. The circumstances are right, and we’ll talk show this on the next 3 charts.
If anything the leading indicators for the silver market are gorgeous. So now is really the time for good things to happen, but even great things to happen. We are talking a spectacular breakout in the silver market.
The Euro is starting to look bullish. Remember, we identified the Euro as THE most important leading indicator for both gold and silver.
Inflation expectations are in favor of precious metals.
And, very importantly, the silver futures market has an enormous upside potential. As said, the net positions of non-commercials (center pane, red bars) is one of our leading indicators. Only once they reach extremes do we know that upside or downside potential is limited.
Right now these positions show lots of upside potential.
Note though this is not a timing indicator, so it doesn’t tell anything about WHEN this might materialize (which is why we have our other leading indicators like the gold price, inflation expectations and the Euro chart).
Anyways, the silver market trades at a crucial pivot point. We see enormous potential in 2019 and 2020. We stick to our top silver stock pick, and our First Majestic Silver Stock Forecast for 2019. We enjoy the ride, regardless whether it takes days, weeks or some months to see the expected multi-fold returns.