…We have been following silver’s performance closely and anticipating a strong move in silver price for a while now. As we write this article, the silver price is still trading within the range on its 35 year silver chart, and we believe the resolution of the long term triangle pattern will be resolved very soon. Summer 2018 will set the tone for silver and gold price for the rest of 2018 and possibly early 2019. Here’s why.
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Silver price about to breakout from a 10 year long triangle pattern
The silver price, as shown below, is still moving within the triangle pattern we have identified and shared with our readers. The descending trend line has been tested extensively since 2016 and the ascending trend line has been back tested successfully more that 4 times.
Although it’s hard to forecast the next move in silver, it looks like something is going to give in the next weeks. The chart below and the frequent trend lines testing leads us to believe the ascending trend line is likely to hold and the descending trend line is likely to give, which means an imminent breakout to the upside for silver price.
This is how we are reading this important silver chart but as always, there is always an invalidation point that investors need to watch closely. For silver, we believe this point is the $15 level. The chart below shows the huge importance the $15 has for silver price. This level also represents a secular support which confirms our bullish outlook for silver in 2018.
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It’s Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand…[and] that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame…
Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months.
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: ‘Got gold?’ The much more important – and potentially more profitable – question to ask these days is, ‘Got silver?’
Silver in early 2018 is inexpensive compared to M3, National Debt, government expenditures, the Dow and gold.