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.More By This Author:Milestone Reached As Copper Drilling Advances In Nevada’s Majuba Hill Is Gold Heading to $2,275-2,280?Gold Stocks Are Heading Higher
