The price of silver keeps on lagging. While gold is setting a series of new ATH, silver is still 40% below its ATH. What’s wrong with silver? The short answer: nothing. Silver is lagging because it tends to outperform during, not at the beginning, of a gold bull market.
RELATED – Silver Price Still 42% Below ATH – Why This Is Not Sustainable.
The silver price must be playing mental games with bulls and bears alike.
That’s how it should be. In the end, silver is the restless metal.
Moreover, our latest silver prediction was very clear – silver is not ready to move to $50 an Ounce in 2024. It is likely consolidating to ‘enable‘ a rally to $50 in 2025.
The great gold bull market
As shown on this 50-year gold price chart, the great gold bull market continues.
After a hiccup in the previous decade, followed by a consolidation in 2022 and 2023, gold is now set to continue moving higher.
We believe gold will retrace at a certain point but not to the extent that it will violate its uptrend. This is why:
The long term bullish cup and handle is phenomenal.
The longer a bullish pattern, the stronger its uptrend.
Silver tends to lag gold
If we look at the gold to silver price ratio, shown below, we see a few spikes lower (higher prices in silver):
- 2004
- 2005
- 200
- 2011
- 2020
All of those years coincide with a late stage gold bull market.
It is crystal clear – silver tends to underperform gold in the initial phase of a gold bull market and outperform gold in a developed stage of gold’s bull market.
Silver – the calm before the storm?
That’s what we believe – the storm will come – it will be a ‘bullish storm’ so to speak.
RELATED – Will Silver Ever Hit $50 An Once? Here Is The Answer And Must-See Charts.
The silver price chart has a few interesting findings:
- It is consolidating above its secular breakout level at 28.80 USD/oz. Silver did not structurally breach this secular breakout point.
- Silver is consolidating above its highest Fibonacci retracement levels.
- There is a falling trendline, since the 2024 highs were set in May/June, which will act as resistance until the consolidation is strong enough for a breakout.
More importantly, November 8th, 2024, is just two months out. Why is this important? Here is why:
The Most Insightful Silver Chart Analysis You Will Ever Read (Linkedin by InvestingHaven)
Remember: it is very unusual for us to post critical timeline insights in the public domain. These type of insights are reserved for our members of our premium gold & silver research.
That said, there is absolutely nothing wrong with the silver price chart, certainly not considering a decision point is still ahead of us.
Silver – what’s wrong?
The short answer: nothing is wrong with silver.
As said, historically, it is expected behavior for silver to lag gold… until silver outperforms gold which typically happens in a developed stage in a gold bull market.
Moreover, the silver price chart looks solid; a decision point is still ahead of us.
In a way, it would have been ‘awkward‘ isf silver was already hitting $50 USD an Ounce now.
