No, this is not meant to be a provocative article with a title that hints at a silver price of 100 USD underway. On the contrary. And we are not perma gold bulls nor are we perma gold bears. We are humans in the first place, analysts in the second place, and above all we are investors that want to be build wealth over time! Our 2021 silver forecast may be ‘just’ 30 to 40 USD. But the longest term silver chart says “100 USD is underway“, and the monthly silver chart says “silver has to clear 29 USD first“. Analyzing markets can be as simple as this, period. It’s investors that make it more complicated, partially because of the noise that financial media is creating and partially because investors can’t control their inner voice.
The longest silver price chart on 50 years is truly impressive, absolutely gorgeous, a gem.
This is a giant cup and handle formation, and we can compare it with some of the crypto charts a year ago. This formation is extremely explosive, the only question is when will ‘it’ starts?
But is that really the question?
No, it isn’t. This chart says ‘accumulate over time’, don’t wait for ‘it’ to start.
It is really hard to understand, based on this setup, when ‘it’ will start. It may be starting now, it may need one or two more years for this ‘handle’ formation to be complete. Hard to say.
But once silver moves back to the 40 – 50 area it will crush former ATH. In no-time will it blast to 100 USD, if not much higher.
The weekly chart on 13 years gives us more detailed information, and there really are only 2 price points that matter: that’s 29 USD as resistance and 20-22 USD as support. That’s it, nothing more nothing less.
Once 29 USD is cleared, on a 3 week open/closing basis, we will see a quick test of 36 – 40 USD. That’s where presumably a consolidation above 30 USD will start which ultimately will push silver to 50 USD and higher.
In the end it doesn’t matter WHEN silver will it 100 USD. All that matters is that 100 USD is underway, and we better position our portfolios accordingly by gradually adding silver related investments.
Silver will play a crucial role in achieving our 100x targets (on 7 years) as per our Mission 2026. In our Momentum Investing portfolio we want to own one or two silver miners, over time. In our Trade Alerts portfolio we will be trading in and out, as silver moves higher over time.