$50 Silver Here We Come, and Thats the First Stop
Technical Analyst Clive Maund explains his view on the silver market, which he believes is in a "buy spot," and he shares two companies he thinks may benefit.
It's a very good time to take an updated look at silver because we have just seen a post-breakout reaction back to a favorable "buy spot" both for it and for related investments, such as silver stocks, following its breakout over a week ago from a consolidation pattern after a 4-month period of correction from its May highs.
We can see the clear breakout and the subsequent minor reaction on its latest year-to-date chart below.
On the 7-year chart, we can see why this breakout is so significant, as the price is now advancing clear away from a much larger consolidation pattern that has built out since the steep runup in 2020 due to the freak COVID crash lows.
This huge trading range took the form of a Head-and-Shoulders consolidation pattern, which itself forms the Handle of a gigantic Cup and Handle base that we will now proceed to observe on a very long-term chart going back to 2000.
The very long-term chart going back to 2000 enables us to see the advantage of the great 2000 bull market in silver that took it up to peak at $50 in 2011. After that peak, it went into a bear market, along with gold and PM sector investments generally, but long before this bear market bottomed, a gigantic Cup and Handle base had already begun to form.
The strong volume pattern and resulting strong On-Balance Volume line helped us to determine the way in advance that the price was destined to break out the top of it into a major bull market and that it has now done.
Having broken out of the top of the recent consolidation pattern over a week ago, doubtless due to a combination of what is going on with BRICS and the increasing mayhem in the Mid-East and other factors, silver is now on course to run at $50 as an initial objective, and it could get there quickly.
Longer-term, as the current doomed fiat system heads for the rocks in the face of manic exponential money creation, silver, and gold, of course, and many other metals, notably copper, palladium, and platinum, are expected to accelerate to the upside with a parabolic slingshot move that takes them to levels that few are currently capable of imagining are possible.
Many of the big silver stocks featured in the Big Silvers Review of September 22 have done well, and many of them, such as Coeur Mining Inc. (CDE:NYSE) and Hecla Mining Co. (HL:NYSE), have reacted back significantly over the past week or so, providing another opportunity to buy them or to add to positions.
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Important Disclosures:
Clive Maund: I determined which companies would be included in this article based on my research and understanding of the sector.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.