The silver price chart of 50 years has an amazing long term chart setup. It is a giant cup and handle formation. This type of chart pattern over a period of 50 years is really exceptional. This is bullish long term for silver. What’s probably THE most important take-away from the silver price chart of 50 years is the fact that silver broke out of this 8-year decline, and is in the ‘bullish side of the reversal’. This suggests that silver’s price will move higher between 2021 and 2023 with a test of all-time highs in that same time period. So while the period 2011-2018 was all about declines we will see the opposite in the years to come! No surprise our Silver Price Forecast for 2021 is bullish!
At InvestingHaven we have this ‘mantra’ which is ‘start with the chart. We analyze any market starting with the chart(s) on multiple timeframes, move on to study leading indicators and fundamentals, mapping those findings back to the charts. We then derive our conclusions.
Moreover, this also what we wrote in our 100 investing tips:
The most dominant patterns are visible on the higher timeframes.
That’s why we focus in this article on the longest possible timeframe of silver’s chart. It’s the silver chart of 50 years. That’s where most dominant trend is visible. All other chart you will consult, whether it is the monthly, weekly or daily, are all subject to the dominant trend on the 50 year silver chart!
You better never forget this!
Silver Price Chart Of 50 Years: Giant Cup-and-Handle
The longer the time period for a chart the more clean and clear the chart pattern(s).
If we apply this principle to silver’s 50 years price chart we see this giant cup-and-handle formation. These are the important elements of it:
- The peaks of 1979 as well 2011. They frame up the giant ‘cup’ formation.
- The flat range in the 80ies and 90ies.
- The non-stop decline since 2011 which only accelerated in 2013. This bottomed between 2016 and 2018 with a big double bottom.
- The breakout of 2019 shows suggests the ‘handle’ formation is underway now.
What does this cup-and-handle mean? It is one thing to see a chart pattern, it is another thing to understand what this implies. This is what we believe:
- Silver turned its 8 year downtrend into an uptrend.
- This uptrend is likely going to last for a comparable period of 8 years (approximately, give or take a few years).
- With this in mind we expect a test of all time highs of 50 USD before 2023 (Ed. note: we adjusted the year from 2026 to 2023 as silver’s heading into 2021).
As we head into 2021 we believe there are few recent observations on silver’s 50 year price chart that are very important for investors:
- Silver confirmed its 8 year reversal pattern, in 2020, and is now clearly in the ‘bullish side’ of the long term bullish reversal.
- This implies that silver will be working hard to go back to 50 USD, at ‘a’ certain point in time.
- Previous highs will be hit somewhere in 2021, 2022, or 2023.
- Between now and then, silver will be, as always, restless. Expect periods with huge volatility, and also expect some periods with fast rises followed by fast declines.
We believe that in 2021, according to the 50 year silver price chart, silver will peak once or twice in the 30 to 40 USD area. Not likely it will move to 50 USD already in 2021 though.
New Bull Market On Silver’s 50 Year Chart
Note that we are no perma bulls nor perma bears on silver, gold or any other market. It was clear a few years ago that we were bearish on precious metals. MarketWatch published in April of 2017 that silver peaked for the year. Bearish? Yes. But also realistic, as we understood this were prices that invited to accumulate. That’s also what we said a few months later on MarketWatch: accumulate silver.
The point we try to make is this: investors want to be invested in markets that are trending higher. It does not make sense to be perma bullish on a market that is flat because you don’t let your capital work.
As per Druckenmiller’s investing insights:
The mistake 98% of money managers and individuals make is they feel like they have got to be playing with a bunch of of stuff. And if you really see it, put all your eggs in one basket and watch the basket very carefully.
Silver was bearish and turned bullish in 2019. Period.#silver will hit all time highs between 2021 and 2023. That's what our exceptionally attractive $silver #chart on 50 years says. It also shows a giant cup and handle over 50 years, hardly ever seen before! Absolutely gorgeous chart.… Click To Tweet
How To Play Silver In The Medium Term
From our latest silver forecast we pick this one quote:
Silver started a new rising channel which points to silver price to temporarily peak at $22 in 2020 and $28 in 2021. Note that these are spikes, and prices will retrace after hitting those peaks. In 2021 we expect one or two bullish moves, when the COT report shows that the non commercials stop decreasing their net long positions. Similarly, inflation expectations should be on the rise in that same time period. It’s the perfect recipe for a strong move in precious metals, especially in silver.
The classic ‘buy the dip‘ approach applies to silver!
Between 2019 and 2023 we expect the following to take place:
- Several spikes higher until silver will test 50 USD.
- Those spikes higher will be followed by strong sell offs.
- However, overall, long term we will see higher lows. Combined with higher highs this is a bullish setup.
- Buy the dip after each sell off.
- Watch for a rising channel to understand when to buy (support) and when to sell (resistance).
- Expect an acceleration (exponential rise) towards the end of this cycle.
This is a projection, and predicting things more than 5 years ahead of time is not a simple thing. It is subject to change. Still we feel very strong that silver’s long term has a clear message, and we are confident about the prediction in this article.
‘Buy the dip in silver‘ in the years to come is what the 50 year silver price chart suggests! By doing this in a disciplined way investors can accumulate silver holdings over time after strong sell offs. Those holdings will be worth many multiples, all this in a risk controlled way.
Ed. note: Want to know how to play the silver market? We want to catch those big moves in gold, silver and precious metals miners. Subscribe to our free newsletter, and get premium insights. More importantly, for very detailed entry and exit signals in the silver market we recommend signing up to our Momentum Investing service in which we track precious metals very closely and take silver mining positions whenever we see an opportunity (which is once or twice per year).