The silver market is about to get red hot. Not confirmed yet, but almost. The silver price is very close to a major multi-year breakout, and the silver miner did not wait as they already broke out! Is our silver forecast 2020 about to come true, similar to most (if not all) of our 2020 forecasts published almost a year ago?
Before we look into the silver market details we want to share the coverage that MarketWatch gave us last week.
MarketWatch featured our bullish silver stance.
This is the article in which our silver forecast appeared: Silver, copper prices mark an impressive recovery from March lows (published 06.26.2020), and this is the quote that covers our forecast, both on silver as well as copper:
Gold has benefited from that, as has silver, which is both a precious and industrial metal. “Silver’s solid price action is driven by its precious metal side much more than its base metal characteristic,” and the low interest rate environment is great for precious metals, says Taki Tsaklanos, founder of InvestingHaven.com. A second wave of virus infection probably would put “even more fuel under silver’s price rally” because of the prospects of a long-lived low interest rate environment, and inflationary measures of policy makers to stimulate economies, says Tsaklanos, who expects silver to test $21 before year-end.
Interestingly, we published our silver forecast initially in October of last year, which is exactly 9 months ago. And the silver market is perfectly on track to get to our projected price target.
The silver price chart is very, very simple: a multi year breakout test is now happening. A tiny push higher is required to confirm this silver price breakout.
What is our expectation? BULLISH on SILVER!
Why?
Because of intermarket effects. As said earlier today: Leading Intermarket Indicator Says ‘Risk On’ About To Win
Moreover, the chart setup we see on below chart, even though slightly hidden with so many annotations, is very bullish. Low probability of failing!
In the meantime silver miners did not wait for the price of silver to go up. Silver miners broke out, strongly, this week.
