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Silver Price Breakout: Why This Time Is Different

The long awaited upside breakout in precious metals is a fact. Thursday, June 20th, 2019, is one for history books. This is 80 days before the 8th anniversary of gold’s all time high (also the start of the almost 8 year bear market). The price of gold (GOLD), as per our leading indicator method, breaks above $1375 today. With that it pushes the silver market into a bull market. Today’s breakout in the price of silver (SILVER) is for real because of its convincing move. After 4 failed attempts in the last 3 years it is clear that this silver price breakout will last, primarily because it is the only time that gold pushes above its 6-year bear market wall. With this it is clear that both our gold forecast for 2019 and silver forecast for 2019 will materialize!

The silver price chart embedded below says it all. However, it should be read together with the gold price chart.

First, silver’s breakout is convincing. It looks solid, even though this is just the first day. We need more data, and we want to see 3 consecutive daily closes combined with 3 consecutive weekly closes above $15.20.

Previous attempts for silver to break out did not start on such a strong note. This looks very promising with the start.

Second, and more importantly, silver’s breakout comes together with gold’s break above its 6 year bear market wall. This is crucial, and never before in the last 6 years did this occur.

If we look at the silver breakout attempts in the last 3 years gold eventually did not succeed in breaking above $1375, the price level we spoke about in all our writings as THE single most important price point for the whole gold market.

That’s why we strongly believe that this time is different.

What’s remarkable is that silver is seriously undervalued compared to gold. Note that silver trades at 10-year lows while gold is now at the same price level as 6 years ago.

As silver is the ‘restless metal’ we expect a violent upside move in the silver market, not only the silver price but more so silver miners. That’s why we had such a bullish First Majestic Silver stock forecast which clearly is going to materialize!

Our work is regularly featured on MarketWatch. We were convinced in April of 2017 that silver had peaked for the year, 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. Again, this year we were proven right, and today’s price action is as close as a confirmation can get.

This market looks gorgeous, and has lots of upside potential in 2019.

silver price breakout

 
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