It’s never a surprise to see Silver following Gold up. It’s a more volatile commodity than Gold but still an excellent Store Of Value over the long term. I was planning to make a post about Silver today and it just happens to be the day it’s made a big 4+% move so the timing is perfect. If you have a look at the chart below you can see the Trading Range that Silver had been stuck in for over a year now...so that makes todays price action a powerful Breakout and quite significant from a Technical Analysis perspective.
Apart from that little dip in October last year, Silver has been bouncing around between $22 and $26 USD since this time last year. The recent confirmation of the Spot Gold Breakout was always going to put strong upward pressure on Silver and today that Coil has been Sprung. This is probably even more exciting for Stackers than the Gold price action because the Trading Range was well established on a longer timeline and with Silvers inherent Volatility it means the upside move from here could really be substantial.
Of course I have a decent Silver investment too, but I am often more wary of the price action in Silver. That's because it is also an Industrial Metal so demand for this Precious Metal can drop when economies go into Recession – which we might be about to see across a few major countries worldwide. Today Silver is behaving like a true Monetary Metal and the Gold : Silver Ratio is still over 84, while it’s historical average is a lot lower than that. What that means is that Silver still has a lot of catching up to do…
Stack ON!
