Almost every one of the precious metals has some sort of explosive feeling and that is especially so with the price of silver. Let me explain why that is the case.
The whole precious metals complex is trading at major, major breakout levels:
- Gold…is just 2% below its 6.5 year giant bear market wall.
- Gold and silver stocks are right at massive breakout levels in their 8 year bear market channels.
- Silver has one of the most explosive setups.
…We are at a major bottom in the silver market…and it should rise by a minimum 50% from here…Sentiment is horrible…and we like this a lot because the combination of silver trading at major breakout point with a horrible sentiment is the ideal playground for a major bull run.
The silver chart featured below does not need any comment, it is simply gorgeous!
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Silver has been in a descending triangle over the past 8 years but looks to be nearing completion. This suggests a large move in Silver is near.
I am convinced that silver will soon explode in price in a manner of unprecedented proportions, both in terms of previous silver rallies and relative to all other commodities. By unprecedented, I mean that the price of silver will move suddenly and shockingly higher in a manner never witnessed previously, including the great price run ups in 1980 and 2011. The highest prior price level of $50 will quickly be exceeded.
We are at the beginning of a major shift out of paper assets into real assets and the more I studied the merits of owning gold and silver the more I realized that silver was the smart decision. Let me explain.
The majority of analysts maintain that gold will reach a parabolic peak price somewhere in excess of $5,000 per troy ounce in the next few years. Given the fact that the historical movement of silver is 90 – 95% correlated with that of gold suggests that a much higher price for silver can also be anticipated. Couple that with the fact that silver is currently greatly undervalued relative to its average long-term historical relationship with gold and it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached.